BlackBerry was one of the major smartphone vendors in the world. It was specializing in secure communications and mobile productivity. At its peak in September 2013, there were 85 million subscribers worldwide. However, they have lost their dominant position in the market due to the success of the Android and iOS platforms; the same numbers had fallen to 23 million in March 2016.
It has a line of smartphones and services designed and marketed by BlackBerry Limited (formerly known as Research In Motion/RIM). The devices can record video, take photos, play music and also provide functions such as web browsing, email, instant messaging, and the multi-platform BlackBerry Messenger service. Old Company’s phones were running on BlackBerry OS. A proprietary operating system developed by BlackBerry Limited.
Therefore, in 2015, The Company re-focused its business strategy and began to release Android-based smartphones, starting with the Priv slider smartphone and then the DTEK50 smartphone. However, Company’s COO Marty Beard told Bloomberg “The Company’s never said that we would not build another BB10 device. “The first BB10 powered device was the BlackBerry Z10. They then introduced all-touch and keyboard-equipped models; including the Q10, Classic, Passport, and the Leap.
The death march of their handset business was carefully chronicled. It failed to pivot when Apple’s iPhone changed the smartphone market, and now those early missteps have finally led to today. As they reported a fiscal second-quarter net loss of $372 million on Wednesday, the company confirmed that it would cease all internal smartphone development and stop making smartphones. It was surprising with the news that BlackBerry will no longer be making its smartphones.
Furthermore, Today the Company financials announces that it’s already licensed its name to an Indonesian firm. That’ll build and sell BlackBerry-branded devices in the regions. “We are reaching an inflection point with our strategy. Our financial foundation is strong, and our pivot to software is taking hold,” said Chen.
“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,” Company’s B CEO John Chen said in a written statement.
The end of Company’s hardware division has been a long-time coming. Nearly a year ago, company CEO John Chen said BlackBerry would get out of the phone business. Only if it couldn’t gain any traction with its handsets.