BlackBerry to cease internal development of smartphones, sharpen focus on software

By , Sep 28, 2016


The ailing Canadian smartphone maker BlackBerry has finally admitted defeat: after years of struggling to turn around its phone business, the company said today it’ll stop designing its own smartphones and pivot focus on software. Any future hardware efforts will rely on partners as the company ceases internal development of smartphones, Recode reports.

BlackBerry CEO John Chen said in a statement:

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.

He added that BlackBerry would exit the phone business if it could not make it profitable. The ailing company recently released a rebadged Alcatel phone, the DTEK50, and has been offering up pieces of its phone software for use on Android devices.

BlackBerry today reported a net loss of $372 million on revenue of $334 million, essentially breaking even. During the second quarter, the company more than doubled its software revenue year over year. BlackBerry expects 30 percent revenue growth in its software and services business for the fiscal year.

Source: Recode

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  • burge

    Are you saying they actually stated ?

  • Y2J

    Shame. They just never advanced once other smartphones started coming out. I always liked the role BlackBerry Storm, and now that I think about it, it’s kind of like 3D Touch before 3D Touch was even a thought.

  • 5723alex .

    RIP Blackberry.

  • Bugs Bunnay

    Exit stage left.

  • n0ahcruz3

    I never used a BB but thats sad.. oh well that’s what happens when u sit on your laurels.

  • ck125

    After the DTEK50 I knew that was the case. They will just use a design from another OEM and slap their logo on the back. Not necessarily a bad thing since it will have the BB software on it rather than the chinese junk that comes on many of those phones.

  • D R

    Um, I don’t think that’s how those accounting numbers work.

    “net loss of $372 million on revenue of $334 million” means they earned $334mil, but it cost them $372+334mil to do it.

    It’s not break even. It cost them $2 to earn $1. That’s bad.