BlackBerry is shutting down its phone business

Blackberry has announced that it will stop designing its smartphones and focus on making software and will outsource the manufacture of hardware to other companies

Canada - Sept 28, 2016. RedNewswire/-

Blackberry which was once choice for professionals, announced that it will stop making phone handsets. It has become difficult for the company to compete with its rival companies like Apple and Samsung, as mobile users now prefer to use touchscreen mobile phones. The company will concentrate on software and security products.

BlackBerry is not venturing out of the smartphone business, but it is just switching from hardware-based company to software oriented one. BlackBerry will continue outsourcing handsets from smartphone makers like TCL and Alcatel and use its own custom Android ROM with focus on security options.

John Chen, the company’s executive chairman and chief executive, said...

“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.”“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," he added.

John Jackson, IDC technology analyst, said...

“This is an entirely sensible decision and probably an overdue one. Software revenue and the margin profile associated with that is where the focus should have been, and now can be.”

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