Blackberry to Quit In-House Smartphone Manufacturing Business
Canada-based mobile giant Blackberry reportedly announced the quitting of signature smartphones. All the development of the Brand Blackberry phones with license technology and brand will be left to its partners.
This move by the company is also signaling a shift out of a strategy, which built its reputation on new smartphone technology. Meanwhile, the company is planning to concentrate on emerging its software business.
The management of the firm believed that the step would be apt rather than cutting down the staff and equipment requirements. The Canada-based mobile giant was a game changer back in 1999 when its new invent RIM 950 provided a wireless internet access to busy business people.
Blackberry devices served their best nearly for a decade and achieved a state that users couldn’t afford to give a miss. But with the entry of iPhone in 2007 in which Apple provided a platform for phones to handle much more than phone calls and emails.
Blackberry failed in updating its Operating System to compete with the most happening device then.
“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,” Said, John Chen, CEO of Blackberry.
During the second quarter which has ended on 31 August. The mobile maker holds a minuscule ratio of its users in U.S smartphone market. While the Apple sold over 40 million iPhones in contrast to 400,000 Blackberry phones.
Blackberry also mentioned a net loss of $372 million which worth 71 percent share. The company is also planning to hand over the hardware development to its partners by 28 February in the coming year where the financial year ends.
The Company has signed an agreement with a telecom joint venture in Indonesia. The upcoming devices in Indonesia may ship a secure version of Android OS in Blackberry phones. As of now, there is no info about the distribution of the devices outside of Indonesia.