Blackberry Officially announced that company is planning to end all internal hardware development. No More Phones-Blackberry Officially Pulls Out from Phone Business. Instead of the internal development, Blackberry will outsource hardware development to partners.
No More Phones-Blackberry Officially Pulls Out from Phone Business
Blackberry took this step because its hardware business has been losing money for some time. There was a 47% decrease in the revenue for the quarter. Moreover, it downs sharply from its days of billion-plus quarters less than three years ago. It lost $372 million due to a hit of $147 million from its RAP (Resource Alignment Program) and $96 million from inventory write-downs.
According to a statement by CEO John Chen:
“The company plans to end all internal hardware development and will outsource that function to partners.”
The company said it sold about 400,000 smartphones in its second quarter which is less than the previous three months. That is why company decided to leave its internal development. This leave will allow BlackBerry to focus on its software business. Because More revenue was generated by software than hardware in the August quarter for the first time in the company’s history.
Blackberry’s latest phones were also manufactured by third-party manufacturer. TCL has manufactured Blackberry phone DTEK50, with its software coming from BlackBerry. Now the third-party manufacturers will manufacture the Blackberry phones. But the company has not yet confirmed the release of further Blackberry phones.
Let’s see whether this move will help Blackberry to regain its market position or not.