BlackBerry to end Hardware Development to focus on Software, Security and Applications

News has circulated over the last 24 hours that Blackberry are to stop making mobile phones. However, die hard BlackBerry fans should not worry too much as the Canadian firm are not backing out of the mobile market completely. BlackBerry are now focusing on making software and will outsource the manufacture of hardware to other companies.

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During the annual BlackBerry Q2 Fiscal 2017 results, The QWERTY tech giants released a statement outlining their plans to end all internal hardware development of BlackBerry devices:

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.

The move may not be a complete surprise considering the recent history of the company. CEO John Chen came into BlackBerry in 2013 to transform the company by focusing more on software and services. Furthermore, BlackBerry’s most recent handset, the DTEK 50, was constructed by Alcatel OneTouch, also hinting at things to come.  Chen went on to sign deals to outsource much of manufacturing to other partners, including Foxconn.

Chief market analyst at CMC, Colin Cieszynski, said: “Today marks a big transition for BlackBerry and the end of an era for the company. The company plans to shift its focus fully to communications and security software development, reducing capital requirements and increasing margins.”

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