Thursday, 29 September 2016

BlackBerry will no longer make smartphones, instead outsource it to partners

BlackBerry has tried everything to stay in the smartphone business from opening its services to rival platforms to jumping ship to Android from proprietary OS. But nothing seems to have have worked. BlackBerry has officially announced that it will no longer be manufacturing any smartphones, instead will be focusing on software development which means application and security.

However, there will still be Blackberry phones available in the market, but these will be outsourced to partners. We have already seen the BlackBerry DTEK50, which is basically a re-branded Alcatel idol 4s (TCL) with BlackBerry branding. The upcoming high-end flagship DTEK60 will also reportedly be a re-branded TCL device.

"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". said BlackBerry CEO John Chen in a statement.

The announcement comes after BlackBerry reported a sharper-than-expected drop in quarterly revenue. Chen also said that BlackBerry would exit the phone business completely if it is not able to make it profitable.

BlackBerry was once dominant in the corporate smartphone segment, but later struggled to keep up with Apple and Samsung, as mobile users increasingly switched to touchscreen devices.

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