BlackBerry cancels launch of two smartphones due to inventory risk
Last week, BlackBerry announced its partnership with Foxconn for making low-end smartphones. While the new deal will become operational in the near future, BlackBerry cancelled the launch of its two smartphones due to inventory risk.
As reported by The Wall Street Journal, a quite filing by BlackBerry with the US Securities and Exchange Commission revealed that due to losses, the company had made the decision to cancel plans to launch two smartphones. The company stated the reason in the filing as “to mitigate the identified inventory risk.” The two smartphones were said to be codenamed as Café and Kopi, targeted to the emerging markets with their affordable pricing.
Ontario-based BlackBerry already floating in losses and poor sales of its existing smartphones are one of the major reasons behind the ongoing losses. According to the fiscal second quarter results, BlackBerry wrote off nearly $1 billion in the unsold inventory of its smartphones where $934 million alone accounted for the remaining inventory of the former flagship Z10. The third quarter was also had a similar image of the company and shown $4.4 billion loss.
Earlier this year, BlackBerry came into a buyout situation although it was halted after the receipt of $1 billion investment. The company has now partnered with Foxconn to overcome the losses made from its low-end smartphones segment. The new partnership will unveil the first smartphone as Jakarta in the first quarter of 2014. Apart from the low-end smartphones, the company is said to announce two of its high-end smartphones, codenamed as Ontario and Windermere.