BlackBerry will no longer make its own phones

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BlackBerry today confirmed that it will no longer make its own phones. It has planned to end all internal hardware development and outsource all work to other companies. It will rely on its hardware partners including China’s TCL Corporation.

This step has been taken to reduce the capital requirements and enhance return on invested capital.

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This is not a surprising news as the company is struggling to sell its smartphones. It also tried Android based smartphones which couldn’t attract many customers. So, this step is a wise move.

On Wednesday, the company reported the net loss of $372 million. So it had to take a serious decision to reduce the loss and help the company to grow.

Now BlackBerry is trying its luck with Android but with its own security apps to provide best and secure Android experience. It launched DTEK50 last year which was Alcatel Idol 4. 

We can also expect future BlackBerry devices to be cheaper. Main issues with BlackBerry devices is its high pricing.

The company CEO, Chen had said BlackBerry would exit the phone business if it could not make it profitable.

BlackBerry is not sure about its future. It is also planning to focus on its services and add more corporate clients to increase the revenue. The smartphone business is not doing well and become worse day by day.

Today’s decision will surely hurt BlackBerry fans, but this is the need of the time.

Source: ReCode


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