Blackberry loses $4.4bn in Q3, signs deal with Foxconn

According to the company, it 'recognised' revenue on approximately 1.9million smartphones, compared to 3.7m smartphones in the previous quarter. Most of the units were BlackBerry 7 devices, rather than the current Blackberry 10 model. The statement said Blackberry lost $4.4bn in the quarter, a figure which included a range of charges against various business elements. However, the company appears to have boosted its cash position, claiming it has access to $3.2bn, compared to $2.6bn at the end of the previous quarter. "With the operational and organisational changes we have announced, BlackBerry has established a clear roadmap that will allow it to target a return to improved financial performance in the coming year," said John Chen, pictured, executive chairman and chief executive officer. "While our Enterprise Services, Messaging and QNX Embedded businesses are already well positioned to compete in their markets, the most immediate challenge is how to transition the devices operations to a more profitable business model." Chen added: "We have accomplished a lot in the past 45 days, but still have significant work ahead of us as we target improved financial performance next year. However, the company is financially strong, has a broad and trusted product portfolio to work with, a talented employee base and a new leadership team dedicated to implementing our new roadmap." Meanwhile, Blackberry has signed a five year strategic partnership with Foxconn. Under the agreement, the companies will jointly develop new BlackBerry devices, while Foxconn will manufacture them and manage the associated inventory. One of the first devices to emerge from the partnership will be a smartphone targeted at fast growing markets and planned to appear 'early in 2014'. "Partnering with Foxconn allows BlackBerry to focus on what we do best," said Chen, "while addressing fast growing markets leveraging Foxconn's scale and efficiency that will allow us to compete more effectively."