The former smartphone giant BlackBerry announced on Friday a third-quarter loss of $4.4 billion. The Canadian company saw a 56 percent drop in revenue in its first results under new chairman and interim chief executive John Chen. BlackBerry also reported revenue of $1.2 billion, down from $2.7 billion in the same quarter last year.

According to reports, the company will now be partnering with Foxconn to produce lower cost smartphones for various markets. Foxconn is also the same manufacturer who builds all the iPhone models currently for Apple. The 5 year deal has Foxconn taking over the hardware design of the new phones, while the software side will remain in house.

“This partnership demonstrates BlackBerry’s commitment to the device market for the long-term and our determination to remain the innovation leader in secure end-to-end mobile solutions,” said Chen. The first phone based on this new deal with Foxconn has actually already been produced. The device is code-named Jakarta, and will initially launch in Indonesia in April 2014.

The recent slew of newer handsets such as the Z10, Q10 and Z30 have drawn very little consumer interest over the past 6 months. Each of these handsets which runs the newest BlackBerry operating system (BlackBerry-10), only combined for about 25% of the smartphone makers sales in Q3. With the top of the line models failing to gain back market share, the once industry leader is praying that the low end of the spectrum could drive back some profits heading into 2014.

Should BlackBerry just call it quits? Or is the low end the way to go? Feel free to leave your comments below.

via: MarketWatch


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