Blackberry now want to focus on software and security

Blackberry now want to focus on software and security

and outsource phone design and production instead

blackberry-to-stop-producing-phones

“The company plans to end all internal hardware development and will outsource that function to partners,” said CEO John Chen in a statement. Elsewhere he stated: “We are reaching an inflection point with our strategy. Our financial foundation is strong, and our pivot to software is taking hold.”

blackberry-phone-priv

This isn’t surprising news considering BlackBerry’s ongoing struggle in the mobile market. According to estimates from Gartner, the company claimed just 0.1 percent of the market in the second quarter, equating to sales of some 400,400 units. The last BlackBerry phone manufactured by the company was the Priv, the company’s first Android-powered device, released. The Verge

The reactions pouring into the web clearly show no shock at blackberry’s move:

Also, there may still be a sizable market share for a physical keyboard designed phone especially if OS is iOS or Android

I’m surprised BlackBerry are still newsworthy. I haven’t seen a BB device in the wild for years, as they’re a distant fifth in what is essentially a two-horse race between Samsung and Apple.

At this point, BlackBerry should just become a software company that specializes in “secure” software. They may have some niche hardware presence among government employees, but their mass-market presence is quite dead. Posted on Sep 28, 2016 | 8:12 AM

I work with lots of government people and BB devices are still everywhere. The standard issue device is either an iPhone or BB and it seems that most of them (even the ones under 40) are mostly choosing BB for some reason. Posted on Sep 28, 2016 | 8:42 AM

Depends where you live. In the Toronto subway you’ll see lawyers, bankers, and realtors all sporting a Classic or a Passport. Posted on Sep 28, 2016 | 10:30 AM

“At this point, BlackBerry should just become a software company that specializes in “secure” software.”
That is what they are, and that’s what they have been for quite a while now. One of the secure software solutions they offer is a version of android with security and productivity enhancements. Rather than just licensing it to other hardware makers, and offering as much of it as is possible via app subscriptions, they are putting the full package on android devices, but they aren’t dealing with the hardware R&D side of it. Posted on Sep 28, 2016 | 11:03 AM

That’s too bad. I have a Blackberry Priv and I’m very happy with it. I got it for the physical keyboard…Posted on Sep 28, 2016 | 8:24 AM

It’s really a shame that they didn’t manage to get with the times. BlackBerry is one of those companies that I liked a lot despite all their flaws. For a while they were so far ahead of everyone else. They have already reached irrelevance and bankruptcy will presumably follow soon, and it makes me a bit sad. Posted on Sep 28, 2016 | 8:41 AM

I remember those days. Got a Blackberry basically because anyone you really wanted to chat with hadBBM, and you needed that in order to not be a social outcast. Hated the devices otherwise. Posted on Sep 29, 2016 | 1:26 AM

Such a shame that BlackBerry won’t be designing its own phones. BlackBerry phones are the only phones I want to use. Hopefully the outsourcing company continues to make physical keyboard phones and not just go the simple route. Posted on Sep 28, 2016 | 8:52 AM

Still waiting for their smaller/cheaper Android phone with a physical keyboard, as promised earlier this year. Not for me, but my partner still won’t give up an ancient Blackberry as she wants a keyboard. Hoping it comes out this year, even if it ends up being made by a third party. Posted on Sep 28, 2016 | 9:32 AM

Their high end phone is also based on another Idol phone that’s Windows based.
To be honest, this is a good strategy. Most OEM knows how to make good hardware already from years of experiences. Posted on Sep 28, 2016 | 9:52 AM

A sad day. BlackBerry makes great hardware, the Classic is a dream to type on…Posted on Sep 28, 2016 | 10:28 AM

It’s really amazing that these big tech companies, whether it be Palm or Blackberry, can’t turn things around once they see the market is going in another direction.

The problem is investment. A company like Palm or Blackberry has to invest massive amounts of money to create their operating system, and then expects that investment to pay out over the long term. When Apple came in an up-ended the entire world, Palm and Blackberry lost all of that investment. They were never able to recover from that.

Been saying that for years. They should’ve rebranded as basically ‘Android for business’ 5 years ago.

I wish they’d been able to make it work. Touch screen keyboards suck, and I miss having a physical button keyboard. I’m just not willing to sacrifice performance to get it.

In fairness this was a long time coming; and the sad part is that they had several opportunities to change direction and could have stayed profitable as a handset maker. But management repeatedly bungled big decisions; to the point where Blackberry became the case study company of what not to do in every class I took in business school.

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