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Blackberry Stops Making Phones to Focus on Software, Security

Image: Blackberry Stops Making Phones to Focus on Software, Security

BlackBerry has decided to stop making phones and focus on software manufacturing. (Dave Thompson/Press Association via AP Images)

By    |   Wednesday, 28 Sep 2016 02:34 PM

If you thought Blackberry had already stopped making phones, you'd be wrong — until now. After once leading the smartphone technology industry, Blackberry Ltd. will stop developing phones on an in-house basis and outsource that work to outside companies as its focus shifts to software manufacturing.

With Apple and Samsung dominating the smartphone market, the move by Blackberry is not an unexpected one and allows the company to focus on what works — and makes money — rather than its outdated phone technology.

According to Bloomberg, the decision to stop making phones has been in the works for a few years, since Chief Executive Officer John Chen has already outsourced some of the company’s manufacturing.

“This allows us to reduce capital requirements and enhance return on invested capital,” Chen said in the regulatory filing, according to the Los Angeles Times.

Blackberry will now focus on creating “state-of-the-art security and device software,” Chen told investors Wednesday, the Times reported.

The CEO hopes to turn the company around with this new move, bringing it back to its days of high profitability and dominance in the tech world.

“Chen is a software CEO historically,” said Colin Gillis, an analyst at BGC Partners, Bloomberg noted. “He’s getting back to what he knows best: higher margins and recurring revenue.”

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If you thought Blackberry had already stopped making phones, you'd be wrong — until now. After once leading the smartphone technology industry, Blackberry Ltd. will stop developing phones on an in-house basis and outsource that work to outside companies as its focus shifts to software manufacturing.
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Wednesday, 28 Sep 2016 02:34 PM
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