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Blackberry will no longer produce Hardware. Is this the End for them?

It seems like phone giant Blackberry has finally confirmed the rumors. It announced that it will cease the hardware production and instead focus on software and services. The company announced the Fiscal 2017 financials and revealed it only made $352 million during the last quarter. But financial problems aside, CEO John Chen said that the company will now focus on outsourcing the hardware material to other companies.

What happened

The company chose to focus more on software development including security and apps. And outsourcing the hardware products seems the best idea right now. This way the company will reduce the requirements and enhance the return on invested capital.

But many people speculated that the announcement Blackberry was about to make would involve finally declaring an end to its mobile phone business. But these rumors did not have any specific background information except something Chen said about a year ago. He then declared that he will quit the hardware development if it proves to be unsuccessful. Earlier this year, he made that comment again. It was only normal for experts to assume this was the announcement they were about to make.

The once powerful Blackberry

We all remember the days of glory at Blackberry. But for quite some time, the company has struggled. The peak of its share value was once $236. Now, it is only $7. This is major difference. Somewhere around 2009, Blackberry was shipping 20% of all the smartphones in the world. Now, this number is less than 1%.

But Blackberry has kept its mobile security services going despite these small numbers. It looks like it will continue to do so. In the released statement, Chen said that the financial foundation of the company is still strong. He also said that the company made shipments of BlackBerry Radar. This is a tracking system. The company reportedly signed a licensing agreement to drive the global growth in their BBM consumer business.

The announcement comes just after two months since the company revealed that they would no longer manufacture the BB10-powered BlackBerry Classic phones. They will instead focus on another type of Android devices. But despite unenthusiastic sales for their first Android phone, BlackBerry Priv, the company announced that they were working on other three new Android devices. The first of these was released in July, in eight countries.

The technology world is changing

All in all, people need to acknowledge the fact the Blackberry has not announced the end of the company. The Blackberry mobile brand has not at all disappeared from the phone market. They will only stop making devices, but instead focusing on software development. But still, this is a very important matter we are facing. Changes are happening and the technology world is shifting in ways we need to understand. The old giants may not be as powerful as they once were, but they will continue to exist. And if their strategy is good, they might even come back stronger than before. But it all depends on how things are going to evolve in this technological domain. For now, things are evolving pretty quickly.

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