It's worth mentioning that most of their loss came from a long lived asset impairment charge of 500 million, not inventory write down. Most articles are insinuating that handsets are the cause of their losses by lumping it in the same headline which is inaccurate. They did only sell around 500k devices this quarter which is low for any smartphone company. However, the CEO has gotten the cost of the handset business to be break even at 3 million phones. If you contrast that with the billions Blackberry was writing down on handsets alone a few years ago, you can see why it's not a horrible decision. Besides, it sounds like they want to start licensing out their software like the HUB and BBM to other manufacturers, and I don't know who would take them up on that unless they could prove their own users are installing/using it.