In a statement, Blackberry has revealed that it will stop manufacturing its own phones to dedicate more of its efforts to its security and software business. However, the company will continue to market phones under BlackBerry brand but will outsource the manufacturing of the phones which means it will end its internal hardware development. CEO John Chen has said in a statement:
“The company plans to end all internal hardware development and will outsource that function to partners. We are reaching an inflection point with our strategy. Our financial foundation is strong, and our pivot to software is taking hold.”
This is a move that could be seen in the coming because of the continuous struggle that BlackBerry has been making in the phone business. The company’s market share has slumped to a negligible 0.1 percent, according to estimates of Gartner. This market share means it just sold 400,000 devices. The company released its last phone named Priv in November last year, which was also its first Android powered smartphone.
At the time of the launch of that phone, the CEO Chen had said that the company will need to sell 5 million phones if it stands a chance of staying in the smartphone hardware business. And now this announcement means that BlackBerry has finally realized that it needs to focus on its other core business area which is software and security.
The company has also highlighted its new software like BlackBerry Hub+ (a productivity app suite) designed for Android and BlackBerry Radar, a software meant for end to end asset racking for internet of things. The company has reported a net loss of $372 million for this quarter.