BLACKBERRY BEGINS OUTSOURCING SMARTPHONE PRODUCTION AND FOCUS ON SOFTWARE

BLACKBERRY BEGINS OUTSOURCING SMARTPHONE PRODUCTION AND FOCUS ON SOFTWARE

Apparently, it’s obvious the rumors are true and just as some of us have actually feared the Ontario based company BlackBerry, research in motion (RIM) through the company chief CEO John Chen said the firm would minimize its involvement in hardware manufacturing as it seeks to redouble its software efforts and his words are quoted below..

“The company plans to end all internal hardware development and will outsource that function to partners,” BlackBerry CEO John Chen said in a statement. “This allows us to reduce capital requirements and enhance return on invested capital.”

 

It’s sad to see that after 14 years in the mobile phone business, the embattled company 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 major market leaders 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. I personally think that’s a good way for them to go seeing the turn of things with recent developments all around and venturing and putting all that energy into the software market wouldn’t really be much of a bad idea. It is a really bold move technically bowing to the superiority of other phone companies across the world which has sidelined it in the technology market.

So for the die hard lovers of blackberry, no need to mull around and you can all relax on that frown as this just means we will probably still see some of the blackberry trademark around. It would be worthy of note to know that BlackBerry is discontinuing devices that run BlackBerry 10 and has halted production of the BlackBerry Classic as part of the break away move from hardware manufacturing. The devices, including BlackBerry’s high-end phone the BlackBerry Priv, were reported to have underperformed — the company sold an estimated 500,000 smartphones in the first quarter of 2016, a dip from the 2.1 million it sold in the same period a year ago.

 

blackberry_priv-640x0
BlackBerry commands less than one percent of the global market and its hardware division, which accounts for more than 65 percent of the company’s research and development expenses, is perceived widely as a drag on internal resources. Wall Street analysts projected BlackBerry’s current course would have led to consecutive losses in 2017 and 2018.
Due to the pledge of the company to continue outsourcing the production of BlackBerry devices to third parties, the DTEK50 which is the first product of such an arrangement, was released in partnership with Alcatel parent company TCL Communications earlier in July.
If the DTEK50 is any indication, future BlackBerry phones will bear fewer of the hardware signatures by which the company became internationally recognized. The DTEK50, for instance, is a rebadge of an existing Android phone, the Alcatel Idol 4, and one of the few BlackBerry smartphones to lack the the company’s signature ergonomic keys. Will be looking forward to your comments.

Written by

Leave a Reply

Your email address will not be published. Required fields are marked *

CommentLuv badge