In 2015, CEO John Chen claimed company could kill off its phone business by 2016 if no turnaround.
BlackBerry which was once a heavyweight in the mobile market and used to be the choice handset to own has revealed a possible shutdown. Now those fortunes are polar opposite as its CEO has announced it will cease making any more hardware if it isn’t profitable.
Speaking at the Code/Mobile event BlackBerry CEO John Chen said the company would “never say never” to completely shutting down the production of its hardware devices, which consists of a range of smartphones, unless it starts to see sales picking up.
Fast forward in 2016, ninth month of the year, the 14-year-old mobile phone business firm, embattled maker Blackberry has announced that it is no longer going to design its own smartphones.
The company, which is famed for its “Qwerty” keyboard mobile phones that were the choice handset for professionals, has been struggling to keep up with market leaders Apple and Samsung as the world has moved to touchscreens.
As a result, the loss-making business said it is going to focus on creating software for mobile phones, rather than the devices themselves. Instead, it will outsource the brand to other manufacturers.
As part of its second quarter financial earnings results, the Canada-based firm confirmed plans to scrap its hardware division in favour of a software and services-only 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,” said John Chen, the company’s CEO.