Blackberry Gives Up On Phone-making
SAN FRANCISCO, September 28, (THEWILL) – Blackberry has declared that would no longer be making handsets 14 years after releasing its first product saying it will outsource to other companies.
This was revealed in a statement released by the company saying its second quarter earnings of $352 million fell short of Wall Street forecasts.
John Chen, Blackberry CEO, declared that the company's new direction is software development, including apps and security rather than subcontracting to partners.
“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,” Chen said.
“We are reaching an inflection point with our strategy, our financial foundation is strong, and our pivot to software is taking hold.”
Story by David Oputah