Blackberry has said it will no longer produce mobile phones shifting its focus to developing GAAP Software and Services.
The decision comes off the back of its 3rd quarter financial results released earlier today. Blackberry recorded 89% growth in its GAAP Software and Services, a figure that has convinced the company to shut down its struggling hardware division.
Blackberry’s attempt to regain market share in the mobile device sector by incorporating Android into its devices was fruitless, with the company deciding to outsource any future mobile device design and build. The company’s CEO John Chen offered the following remarks:
“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”.
Blackberry used to be a force to reckon with, but it failed to evolve following meteoric rises of Apple’s iPhone and Samsung’s Android Devices. Its failure to adapt its Blackberry OS to consumer trends saw it slowly lose its reputation and market share.
The Blackberry OS was considered the most secure OS on the market, with end-to-end encryption on all communication methods, to the point where it was blocked from entering the Zimbabwe market with its famous Blackberry Internet Service (BIS) and Blackberry Messenger (BBM).
We suspect that more companies may start to abandon device making to focus on software development as Samsung and Apple continue to dominate markets leaving no room for smaller competitors.
- Techzim