Blackberry today have announced they are no longer making handsets.. Sad news for some but it was a long time coming due to their decline in handset sales it was only a matter of time.. Instead they will outsource the handset business which makes sense and something other players in the market have done.. Blackberry just like Nokia once reigned supreme in the mobile industry and they are names nobody will forget.. The Blackberry Priv which was their first in-house android handset sales did not go as expected but indeed it is certainly a nice mobile phone but its price was its downfall if im honest. Having said that Blackberry remains committed to investing in and growing the Mobility Solutions business…
John Chen, Executive Chairman and CEO says…
“We are reaching an inflection point with our strategy. Our financial foundation is strong, and our pivot to software is taking hold,”
“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.” “Our new Mobility Solutions strategy is showing signs of momentum, including our first major device software licensing agreement with a telecom joint venture in Indonesia. Under this 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. This allows us to reduce capital requirements and enhance return on invested capital,” continued Chen. “We remain on track to deliver 30 percent revenue growth in software and services for the full fiscal year. We are revising upward our non-GAAP EPS outlook to a range of breakeven to a five cent loss, compared to the current consensus of a 15 cent loss. This reflects increased confidence based on improving margins and reduced interest expense from the recent refinancing of our debt, as well as planned investments in growth areas.”
After a $372 million quarterly loss, the Canadian tech firm said it will outsource all hardware development to focus on software. But how will devices look in the future?? Well that is a matter of time for us all to find out…Their last few devices where pretty good with the quirky design of the passport and their first Android the Blackberry Priv even the Classic and Leap where pretty good for average users and worthy devices but price seemed to be an issue alongside the dying OS..