Third-party manufacturers will become more involved going forward
BlackBerry has confirmed it will no longer be making its own hardware in an announcement alongside its Q2 financial results. Instead it will solely be concentrating its efforts on software and services in the future.
The Canadian company’s executive chairman and CEO, John Chen, commented: "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…"
He went on to explain how BlackBerry’s efforts in software are becoming a more valuable arm of the business: "In Q2, we more than doubled our software revenue year over year and delivered the highest gross margin in the company's history.
“We also completed initial shipments of BlackBerry Radar, an end-to end asset tracking system, and signed a strategic licensing agreement to drive global growth in our BBM consumer business."
The BlackBerry name will live on
This doesn’t mark the end of BlackBerry. As we’ve seen with the DTEK50 released earlier this year and 2015’s PRIV®, the Android OS runs well with BB. And the hardware production will most likely be picked up by Chinese firms, including Alcatel owners, TCL.
This means BlackBerry will continue to attribute its well-established name to future handsets, but won’t have a hand in the actual manufacturing process.
BlackBerry loyalists will no doubt be put out by the news, but it’s no secret that the company has been on the ropes for a while. As they say - the show must go on.
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