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Blackberry bows out, will no longer be producing smartphones

Blackberry bows out, will no longer be producing smartphones

 


It is no new news that Blackberry has been trying fruitlessly to regain it’s position in the smartphone market. A market in which the Canadian based company was once the top dog until its Operating system fell below Android in pecking order among smartphone users. Next was the company’s hardware, which is no longer favoured like it used to be.

The Canadian company has made efforts to relaunch themselves unto the top smartphone maker’s mainstage but this has thus far not been so successful. Even switching to Android OS wasn’t enough to give them a comeback. This is evidenced by the below par sales performance of the company’s recent devices, the Priv, and DTEK50.

Blackberry’s struggles in the smartphone space has since raised suggestions and ideas, that the company should stop producing hardware and focus their resources on areas they still have a sizeable market share, namely security and software solution. The Canadian company has finally moved in that direction as they have publicly announced that they will no longer produce smartphones. Rather the task will be outsourced to companies that they find capable of producing hardware for them. With this, Blackberry’s job is to brand the devices and install their operating system on them. We have already seen this occur with the Blackberry DTEK50. The phone in reality is similar to the Alcatel Idol manufactured by Chinese smartphone company, TCL. Blackberry will also be partnering with an Indonesian telecom giant, they will be producing devices that will bear the Blackberry.

Here is an relevant excerpt of the official statement released by Blackberry’s CEO John Chen.

The company plans to end all internal hardware development and will outsource that function to partners. This allows us to reduce capital requirements and enhance return on invested capital.

By and large, Blackberry will no longer be involved with the design, production or any other job that has to do with producing a smartphone. The company has now turned their focus on security and applications.

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