News

BlackBerry Lose Nearly $1 Billion From Unsold Z10 Inventory Write-Down

When BlackBerry released the Z10 handset back at the end of January this year they hoped the smartphone would sell really well and turn the company’s fortunes around somewhat. However, in a rather unfortunate turn of events the BlackBerry Z10 has actually made things worse, rather than making things better. According to BlackBerry’s latest second quarter fiscal 2014 results the company had to pay a $934 million, just shy of $1 billion, inventory charge for the write-down of Z10 inventory. What this means is that BlackBerry scheduled the production with its suppliers of more handsets than were demanded by consumers. The end result is a tonne of unsold inventory that someone has to pay for and in this case it’s BlackBerry that are paying for it.

For those who remember Microsoft had a similar inventory charge for writing down stock of Surface tablets but that was around $900 million and Microsoft are a much larger company. BlackBerry’s Q2 revenue of $1.6 billion was more or less totally obliterated by the Z10 inventory write-down and BlackBerry ended up with a final GAAP loss of $965 million. The additional losses incurred were due to corporate restructuring according to BlackBerry. BlackBerry also stated the majority of the 3.7 million handsets sold in Q2 were older BlackBerry 7 devices meaning sales figures for the newer Z10 and Q10 handsets were probably quite grim. BlackBerry claims despite all the disappointment it saw strong growth among its enterprise BES 10 customers.

Image courtesy of BlackBerry

Ryan Martin

Disqus Comments Loading...

Recent Posts

New Report Suggests Helldivers 2 Xbox Release Unlikely

As one of the most popular online games lately, it’s no surprise that Xbox fans…

6 hours ago

November Xbox Game Pass Games Revealed

We've finally reached the month of November, and that means one thing for Xbox users:…

7 hours ago

PS5 Pro Enhanced Games List Revealed

For those who haven't had it on their radar, this week we take a new…

7 hours ago

MSI Overclocker Pushes Kingston Fury Renegade RAM to Record-Breaking 12,196 MT/s

An overclocker from the MSI team has managed to push the Kingston Fury Renegade CUDIMM…

8 hours ago

NVIDIA Pushes SK Hynix to Accelerate HBM4 Production

It seems that NVIDIA wants to launch its next products ahead of time. We are…

8 hours ago

ASUS Unveils New TUF Gaming A2 SSD Enclosure with Enhanced Durability and Speed

The trend of upgrading storage from traditional hard drives to SSDs has become increasingly popular,…

9 hours ago