London, UK -- (SBWIRE) -- 07/19/2013 -- The stock market value of the Smartphone manufacturer Blackberry plummeted by more than £1.3 billion a couple of days ago; financial reports indicate that Blackberry's attempt to update its operating system and participate in the computing revolution along with its competitors has been unsuccessful. Vincent Bootes PG Technology colleagues were shocked to learn that analysts on Wall Street, who had expected Blackberry to produce a profit of at least £16.4, revealed that the firm had not only missed its sales targets, but had experienced a loss of several hundred million.
Blackberry had been working on updating its handsets for a year and half, so as to transform them from email devices to internet-friendly gadgets which would allow users to surf the net on the go. However, just 2.72 million of the company's new Q10 and Z10 handsets were sold during the last quarter - this number was significantly lower than the expected amount of eight million. Thorsten Heins, the chief executive who replaced Blackberry's founder Mike Lazaridis last year, had recently stated that he was confident that sales would increase. However, on the 28th of June, friends of Vincent Bootes director read that the company's shares crashed by twenty seven percent in the space of a few hours, resulting in the loss of every penny earned since the start of 2013.
Vincent Bootes business associates were surprised to hear that this company, whose handsets were once considered to be the best on the market, had fallen from popularity so quickly. Analysts now say that Blackberry needs to act quickly in order to save itself from ruin. Whilst revenues went up slightly last month, the number of people subscribed to its business and consumer services is dropping quickly, going down four million in just three months. The asset manager at Alliance Bernstein, Pierre Ferragu, described Blackberry as being in 'crash mode' and added that it is not most likely too late for them to be acquired by another firm.
On Vincent Bootes profile page on Facebook, an acquaintance mentioned that Lenovo, the Chinese manufacturer, were looking into acquiring Blackberry, but have since decided against it. Whilst Blackberry have yet to comment on the recent drop in stock market value, a representative did state a number of weeks ago that due to the competitive nature of the Smartphone market, they were finding it difficult to estimate revenue, units and profitability levels.
Blackberry's stock market value dropped dramatically this week, and sales of its new Smartphone devices have been poor. At this point, analysts say that it may be too late to save the company, although there are rumours of an acquisition.