Shareholders set to voice concerns at BlackBerry AGM after 28 percent fall in share price
Anxious BlackBerry shareholders are likely to raise their concerns at the company’s annual general meeting (AGM) this week after it posted a £55 million loss in its most recent quarterly results.
This has caused shares to plunge by around 28 percent and BlackBerry predicted it would post another one for the current quarter.
Investors told Reuters that the results were a “quasi death knell” for the company and many are unconvinced of the firm’s ability to regain lost share in the smartphone market under the current strategy.
BlackBerry 10 smartphones are seen as crucial to the company’s chance of a recovery, but despite releasing three models running the software, sales have been less than analysts’ expectations, leading to suggestions the company may need to change direction.
CEO Thorsten Heins has said BlackBerry is on the right track and it just needed more time as it planned to release more BlackBerry 10 smartphones in the coming months.
However many investors are contemplating the idea of a sale of the company or some of its businesses. BlackBerry’s valuable patent portfolio and high-margin service business could be attractive to potential suitors.
BlackBerry has already announced BlackBerry Secure Work Space, a mobile device management offering that allows businesses to secure iOS and Android handsets in a BlackBerry Enterprise Service 10 (BES) environment, while it also has plans to launch a cross-platform version of BlackBerry Messenger (BBM) this summer.
BlackBerry is not alone in its struggle to compete with the likes of Apple and Samsung in the high-end smartphone market. HTC shares slumped to a new seven-and-a-half year low despite the Taiwanese manufacturer launching the critically acclaimed HTC One earlier this year, while S&P has downgraded Nokia to B+ following its buyout of Nokia Siemens Networks last week.
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