BlackBerry Announces Retirement From Smartphone Manufacturing
An era has come to an end. After more than fourteen years in smartphone manufacturing, BlackBerry has announced that it is drawing curtains to "all internal hardware development".
But do not worry, as the "BlackBerry" mobile brand is here to stay.
John Chen, the company’s executive chairman and chief executive, said in a statement
"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 is following Google and Apple's footsteps, both of whom outsource the manufacturing of hardware from other companies. For example, Google's Pixel devices this year have been manufactured by HTC.
BlackBerry's upcoming flagship, the DTEK60, is slated to be launched on October 11.
This announcement was on the cards since BlackBerry's quarterly revenues were dipping sharply. BlackBerry's sales have taken a dip of 31.8% this quarter as compared to the same quarter last year.
Since Android & iOS came into the fray, it seems as if BlackBerry has been fighting a losing battle against it's competitors. In September 2013, there were 85 million BlackBerry subscribers worldwide. After 1.5 years, in March 2016, the number had fallen to 23 million, a massive 73% decline. During this period, BlackBerry also tried it's hand at Android as well, but it's Android powered devices such as the BlackBerry Priv & the DTEK50 didn't seem to have made a mark.
At BlackBerry’s annual meeting, Mr Chen had said that, “The device business must be profitable, because we don't want to run a business that drags onto the bottom line. We've got to get there this year. I don’t personally believe handsets will be the future of any company." Thus, the company had dropped hints of what might be happening earlier this year and hence BlackBerry calling quits on smartphone manufacturing shouldn't come as a surprise.
BlackBerry Announces Retirement From Smartphone Manufacturing Reviewed by Krittin Kalra on 9/29/2016 03:14:00 pm
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