“Blackberry will rely on third-party vendors to make its phones while providing the software for the same”
Beleaguered smartphone brand BlackBerry has finally declared defeat and revealed at an investor’s call today that it will stop designing smartphones going forward. BlackBerry categorically stated at the call that it will rely on partners for making hardware. Furthermore, the company also mentioned that it will concentrate its focus on its software business.
Talking about the new strategic move, John Chen, Executive Chairman and CEO, BlackBerry, said, “In Q2, we more than doubled our software revenue year over year and delivered the highest gross margin in the company’s history. Under this strategy, we are focusing on software development, including security and applications. This allows us to reduce capital requirements and enhance return on invested capital.”
It will be interesting to note that BlackBerry has already taken a step in this direction by releasing the DTEK50, which was essentially a rebranded Alcatel phone. Similarly, there are already rumours about the company’s next device DTEK60, which again resembles the Alcatel IDOL 4S.