Smartphone maker BlackBerry Ltd(NASDAQ:BBRY)’s management gives out reasons for failing to woo customers; Google Fiber Still Worthwhile Despite AT&T Entry, Says Bernstein.
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Smartphone maker BlackBerry has disclosed that customers are turning against its products. The firm said that the stiff competition affecting the firm’s operational and financial results which previously affected demand in US is now being seen all over the world including markets where the firm has witnessed very good growth historically.
The firm said that the slowdown was primarily due to rise in the number of inexpensive phones especially based on Android operating system. But, it did not deny that the shortage of apps in its own operating system also resulted in the decline.
The management wrote the information in the last quarter results announced by the firm.
The company delayed the release as well as cancelled the conference call with analysts due to the confidential and nonbinding bid from the largest shareholder, Fairfax Financial Holdings of Toronto.
The firm’s North American sales were $414 million during the period whereas the all other regions excluding Asia accounted for almost $686 million, about 42 percent. The firm came out with losses of over $1 billion for the quarter due to the inventory write-down on the firm’s 10 operating system, which was pitted against competitors such as Samsung and Apple.
Bernstein Research‘s Carlos Kirjner assessed the threat to Google Inc(NASDAQ:GOOG) of AT&T‘s that it would be delivering Internet access of up to one billion bits per second in Austin, Texas by next year using fiber-optic lines.
Kirjner, having an Outperform rating on Google shares, with a price target of $1,000 price target, stated that AT&T is taking a leaf out of Google’s book. He opined that this is in reaction to Google’s building its own fiber network and service in Austin, which would begin from 2014.
It is difficult to gauge the impact of AT&T’s reaction on Google at this juncture.