By Shad Bookout
BlackBerry's (Nasdaq:BBRY) stock price plunged after it announced a second-quarter sales drop of $610 million and T-Mobile (NYSE:TMUS) said it will no longer carry the smartphone maker's units.
"We are very disappointed with our operational and financial results this quarter and have announced a series of major changes to address the competitive hardware environment and our cost structure," BlackBerry CEO Thorsten Heins told Bloomberg. The major changes translate to additional job cuts and cost-savings measures for the already struggling company.
Plus, T-Mobile's move understandably leaves investors wondering about BlackBerry's ability to remain relevant in the competitive smartphone market. At the same time, AT&T Inc. (NYSE:T), which is the second-largest wireless provider in the U.S. market, says it will continue selling BlackBerry's phones out of its stores. The same goes for the largest U.S. provider, Verizon Wireless (NYSE:VZ).
BlackBerry's share price edged back up slightly to $8.03 after words of confidence from the Prem Watsa, chief executive of Fairfax Financial Holdings Ltd. (FFH), BlackBerry's largest investor. However, BlackBerry's shares remain significantly below Fairfax's $9 per share offer to take the company private.
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