BlackBerry is ending its internal hardware development to focus on software

BlackBerry is ending its internal hardware development to focus on software

On Wednesday, BlackBerry CEO John Chen announced a strategy shift for the struggling smartphone manufacturer, stating that the company will discontinue its smartphone manufacturing business and will focus chiefly on software.

 

The disclosure of BlackBerry's new strategy by Chen came as part of the Canada-based company's Fiscal Q2 2017 report. The strategy shift by BlackBerry has apparently been in the making for more than one year.

 

As a result of BlackBerry's strategy shift announced by Chen, the company will end all of its internal hardware development. BlackBerry will outsource the task of hardware development to its partners, in a move which Chen said would enable the company to "reduce capital requirements and enhance return on invested capital."

 

Asserting that time has now run out for BlackBerry's hardware unit, which once produced top-notch smartphones that kicked off a worldwide smartphone battle nearly twenty years back, Chen said that, under the new strategy, BlackBerry's key focus will be on "software development, including security and applications."

 

Highlighting the fact that outsourcing "is the best way to drive profitability in the device business," Chen told reporters that BlackBerry's "turnaround is done" and that the company's main focus would now be on growth.

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