9/28/2016 5:38:17 PM
BlackBerry stops making its own phones
BlackBerry has announced that it will stop manufacturing its own phones.
The brand revealed the change of direction at its second quarter results. BlackBerry reported an 89% year on year growth in its software and services revenue for the quarter.
Executive chairman and CEO John Chen explained that it was the development of its software and services business which had led to it to decide to end hardware development: ‘We are reaching an inflection point with our strategy. Our financial foundation is strong, and our pivot to software is taking hold. In Q2, we more than doubled our software revenue year over year and delivered the highest gross margin in the company’s history. We also completed initial shipments of BlackBerry Radar, an end-to end asset tracking system, and signed a strategic licensing agreement to drive global growth in our BBM consumer business.’
‘Our new Mobility Solutions strategy is showing signs of momentum, including our first major device software licensing agreement with a telecom joint venture in Indonesia. Under this strategy, we are focusing on software development, including security and applications. 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.’