Skip to content
Subscriber Only

BlackBerry Inventory Gains Raise Chance of Writedown

BlackBerry Ltd.’s swelling inventory of unsold smartphones is approaching the $1 billion mark, raising the chance the company will make its fourth writedown in two years when it posts earnings next week.

BlackBerry reported a 47 percent gain in the value of its inventory in the June quarter, bringing the figure to $887 million -- the biggest increase among more than 75 of its peers, according to data compiled by Bloomberg. The amount may rise again in the most recent period as sales sputter, said Brian Huen, who tracks the company as a managing partner at Red Sky Capital Management. BlackBerry announced last month that it was open to takeover bids, hurting already-sluggish sales because customers are more skittish about the company’s future, he said.