Morning Brief: BlackBerry reports quarterly loss, though revenue rises; NYT updates iPhone, iPad apps
Research In Motion, which is now doing business as BlackBerry, today reported first quarter earnings, reporting a loss on the quarter of $84 million – sending the company’s stock down over 16 percent in pre-market trading.
The fact that revenue rose 15 percent to $3.1 billion was offset by the company’s forecast that losses would continue.
“The smartphone market remains highly competitive, making it difficult to estimate units, revenue and levels of profitability. Throughout the remainder of fiscal 2014, the Company will invest in BlackBerry 10 smartphone launches, and the roll out of BlackBerry Enterprise Service 10, to continue to establish the new BlackBerry 10 platform in the marketplace. The Company will also invest resources to evolve BlackBerry Messenger into a leading cross platform mobile social messaging application, and launch other revenue initiatives associated with new services and emerging mobile computing opportunities. Based on the competitive market dynamics and these investments, the company anticipates it will generate an operating loss in the second quarter.”
The New York Times this morning issued updates to both their iPhone and iPad applications. The updates introduce a new metered paywall protocol whereby readers without a subscription can access all articles free of charge for the first seven days following the app download, but then will be only able to access three articles free of charge thereafter.
This tightening of the paywall is surely meant to force readers to sign up for some level of subscription sooner by making readers bump up against the metered paywall early on in the month.
The problem for the NYT’s iPad app, though, remains the same: it mirrors the website and so is not a distinct product. A digital subscription, one that gives access to the website, is all that is necessary for iPad owners.