Blackberry Slashes Cost as Next Step toward Revival

Blackberry Slashes Cost as Next Step toward Revival (Bloomberg)

Blackberry announced that it has retained the services of one of Apple’s main suppliers, Foxconn. Foxconn’s production plants currently are located in Indonesia and Mexico, enabling Blackberry to significantly cut the cost of handling parts and shipping them — two of the company’s most wasteful production items. And cost-cutting measures couldn’t come at a better time for this Ontario-based firm, which saw sales fall 56 percent to $1.19 billion in Q33. In trading earlier today, shares of Blackberry were down 8.8 percent to $5.70. Whether the cost reduction is viewed by investors as a step toward regaining health remains to be seen.

Wayne Ellis

Wayne Ellis has been involved in the financial publishing industry for more than 15 years. During that time, he has helped to edit, to market and to launch products and services for Ernst & Young, LLC, Fidelity Investments, Agora, LLC, and Eagle Financial Publications. He currently puts his broad-based experience and industry expertise to use as a contributing writer for Eagle Financial Publications. He also is a graduate of Arizona State University.

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