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BlackBerry has finally stopped its handset business

BlackBerry
BlackBerry has finally stopped its handset business
After putting all the efforts to survive, finally, BlackBerry has stopped its Handset manufacturing unit. BlackBerry Ltd posted a 31.8 percent fall in second-quarter revenue and it said it would end all internal hardware development, including its well-known smartphones.




While informing to world company CEO John Chen said: "The company plans to end all internal hardware development and will outsource that function to partners."

There are essentially two takeaways from this piece of information. One is that moving on there will not be any BlackBerry-made phones in the market. At the same time, this does not mean the end of BlackBerry-branded phones in the market. Essentially, BlackBerry will stop making its own phones and instead outsource the job to third-party manufacturers, something along the lines of what Google used to do with its Nexus-branded phones.





How BlackBerry Will Change

BlackBerry has completely outsourced smartphone design and production, a process that Chen had been doing piecemeal since taking over as CEO almost three years ago. Analysts had been holding their breath for the news after Chen said September was his deadline for making the chronically money-losing device business profitable. BlackBerry's device business, which it calls "Mobility Solutions," will focus on developing applications and an extra-secure version of Google's Android operating system that it can license to other companies.

"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," Chen said in a statement. "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."

BlackBerry was struggling in market




BlackBerry has been struggling to re-establish itself in the market since the fall from grace of its BB7-based flagship devices of yore. Their push for a brand new OS, BB10, failed, as did the hardware that they’ve built since. While few can deny the quality of the OS, it was too little too late.


The company has since made one abortive attempt at Android hardware in the form of the overpriced, underpowered and prone-to-overheating BlackBerry Priv. It has also tried to establish itself as a software services provider with a BlackBerry Hub and Messenger for Android, but those services are yet to catch on or even prove competitive in the congested app space.

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