Blackberry revival boosted by sales increase

Blackberry has reported revenues of £377 million for the three months to November – 12% higher than the previous quarter.

Blackberry has reported revenues of £377 million for the three months to November - 12% higher than the previous quarterIt was the struggling smartphone maker’s first quarter on quarter increase for more than two years.

The better than expected results give the Canadian company some hope that its turnaround plan is working.

Revenue was 31% lower than for the same period last year, but losses narrowed to £61 million compared with a £102 million deficit a year ago.

Chief executive John Chen said he was pleased with progress, as growth in enterprise software gained momentum and revenue rose across its “areas of focus”.

“Blackberry has a solid financial foundation, and we are executing well,” he said.

Revenue from software – a figure being closely watched by analysts – more than doubled to £111 million compared with the same quarter last year.

Total software revenue for the first three quarters reached about £249 million – within striking range of the £350 million forecast for the full financial year to February.

Last month, the company launched a new smartphone called the Priv, the first to run on the Android platform rather than its own operating system.

The majority of the world’s smartphones run on the Google developed Android.

Blackberry said the Priv combined Blackberry-level security with access to the 1.6 million apps in the Google Play app store.

Mr Chen said the device had been well received and would be available on more mobile networks globally next year.

Blackberry aims to sell five million of the handsets a year. The Priv costs about £580 without a contract, putting it in line with the iPhone and premium Android devices.

The company sold 700,000 devices in the third quarter, down 100,000 from the previous quarter, but average selling prices rose from £165 to £220.

Shares in Blackberry closed up 10.4% in New York at $8.61, but the stock is still down more than a fifth this year.

The company is valued at just £2.83 billion in comparison to Apple who is worth more than £415 billion.

January 18, 2016  Tags: , , , , ,   Posted in: Business Communications, Business Sales, Business Services, Business Survival, Business Win, Connected Business, Digital Business, Global Business, Growing Business, Growing Sales, Technological Businesses, Uncategorized, Winning Business

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