03 Oct BlackBerry Phones Discontinued
BlackBerry phones will no longer be made in-house. In a move to turn the company around, the once dominant cell phone player will outsource its process going forward.
Remember when President Obama fought security to keep his BlackBerry, and the device garnered the nickname “Crackberry? Since then, BlackBerry has continued to struggle in keeping pace with Apple and Android operating systems and innovation. They even released a device using the Android operating system with hopes of salvaging their position, but the move was not enough to keep the Canada-based company’s signature product afloat. BlackBerry phones running the Android operating system battled glitches and performance issues. CEO John Chen also said those phones’ security did not meet the level of the BlackBerry 10 operating system.
Chief executive, John Chen said last week that “We have decided to discontinue all the handset hardware development.”.
During the conference call for analysts, he continued by saying they “believe that this is the best way to drive profitability in the device business… and allows us to reduce capital requirements and enhance return on invested capital.”
Earlier this year, BlackBerry suggested that they continued to make phones at the request of large agencies such as the military and law enforcement, but Mr. Chen dismissed those claims during the conference call. He did say, however, that other companies would meet those customers’ needs.
While it’s been reported that other companies have interest in the BlackBerry trademark and software, no details were provided.
Most recently, phones have accounted for about 30% of BlackBerry’s revenue, but the company still took about an $8M loss.
Chen also said that the company is “reaching an inflection point with our strategy. Our financial foundation is strong, and our pivot to software is taking hold”.
In recent years, BlackBerry has been pivoting, shifting towards becoming a security software company
The company’s strategy is expected to be complete at the end of their fiscal year at the end of February 2017.
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