BlackBerry's turnaround will happen soon

July 25
8:22 AM 2013

BlackBerry's turnaround relied on the success of BlackBerry 10. In the last quarter, the company was able to sell around 2.7 million units. BlackBerry planned to face the gaping hole in its potential improvement through services revenue.

Since BlackBerry's hardware business fell over the years, its gross productivity became entirely dependent on the services enterprise. In fiscal 2011, hardware gave up to two-thirds of all gross income with services making up the rest. Conversely, in fiscal 2013, the hardware fell into negative gross margin hence, the services business paid for all the bills.

The company's overall gross margin improved to 34% due to the sales of BlackBerry 10. Then again, inevitably, BlackBerry's moneymaking services enterprise whose gross margin hovered about 85% was the profitable business.

CEO Thorsten Heins said that the company was not interested on being a "device-only" company. As it tries to get the momentum, BlackBerry would focus on advertising profits within BlackBerry Messenger Channels, its consumer-oriented project. It would also look for alternative routes so that service monetization would compensate within the business.

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