Blackberry Woes Continue
Blackberry shares fell 6% yesterday as doubts about the $4.7 billion bid from Fairfax surfaced and one major US retailer announced that it wont be stocking its units in its stores anymore.T Mobile which has greater market share in personal consumers as opposed to business announced the move to drop Blackberry’s as part of an efficiency drive across its chain.BlackBerry, which put itself on the block in August, on Monday accepted a tentative $9 a share offer from a mostly Canadian consortium led by domestic insurer Fairfax Financial Holdings Ltd, Blackberry’s biggest shareholder with a 10 percent stake.
BlackBerry says its second-quarter results will feature slumping sales, a big operating loss and hefty job cuts. It reports results on Friday, but canceled plans for a conference call with investors because of the Fairfax bid.In the U.S. market AT&T Inc, No. 2 U.S. mobile operator said it is still selling Blackberry’s out of its stores and Verizon Wireless, the biggest U.S. mobile operator, says it will provide its customers with what they want. Sprint was not immediately available to comment.
BlackBerry’s woes will hurt suppliers. Contract electronic manufacturer Jabil Circuit, which counts BlackBerry as its second largest customer, said it is very likely it will part ways with the company, which could take between 28 and 34 cents out of its 2014 earnings per share.Once the dominant leader in a cut throat business the continued malaise of Blackberry seems to almost mirror the exponential rise of Apple and Samsung who both started out as personal consumer providers but are now increasingly encroaching on the business market.