BlackBerry Announces They Will No Longer be Designing Devices but Are Not Exiting the Phone Business

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During this mornings Q2 Fiscal 2017 Results call, BlackBerry CEO John Chen announced that they will be ending all internal hardware development of BlackBerry devices and will be outsourcing the process to partners from here on out.

 

“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.”

This is actually something BlackBerry has already started to do with the BlackBerry DTEK50 and with the DTEK60.  This allows them to not have to spend the money on design and parts and have someone do it for cheaper. If the devices don’t sell well the fault is entirely on them.  BlackBerry isn’t getting entirely out of the phone business as the devices will still be made by BlackBerry and I’m sure sold by BlackBerry on ShopBlackBerry.com. BlackBerry is very close to becoming a company that is making profit again and this will just put them one step closer.  Let us know what you think of this historic news in the comments below!

 

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Brad

Editor in Chief at BerryReporter
Brad is the Editior-in-Chief for berryreporter.com and he is a BlackBerry abuser. He loves to share his news and knowledge in the BlackBerry world through his post and his Podcast "The Berry Report". When he is not using a BlackBerry device he likes to play video games, watch movies ,tv shows, sports, or exploring other mobile platforms. Feel free to follow him on twitter @BlackBerryBrad or Add him to BBM Pin:BBBrad

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