Blackberry announced this morning that going forward, they plan to end all internal hardware development and will outsource that function to partners. The company's strategy will now focus entirely on software development, which means applications, like BBM, and security.
Statement from Blackberry
"Our new Mobility Solutions strategy is showing signs of momentum, including our first major device software licensing agreement with a telecom joint venture in Indonesia. Under this strategy, 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. This allows us to reduce capital requirements and enhance return on invested capital," said BlackBerry CEO John Chen.
"We are reaching an inflection point with our strategy. Our financial foundation is strong, and our pivot to software is taking hold," Chen continued. "In Q2, we more than doubled our software revenue year over year and delivered the highest gross margin in the company's history."
Thanks to you, Chen!
CEO John Chen has tried to transform the company around since joining in 2013. But even as he has pushed BlackBerry toward mobile and security software, apps and the plenty of connected devices known as the Internet of Things, BlackBerry has suffered in some aspects, distinctive sales declines and lost of customers.
CEO Chen has even done what was incredible, initiating the BlackBerry company to other operating systems. The company now sells phones that run Android system. It also killed off its BlackBerry Classic line of phones this season.
So CEO Chen really deserves credit for preserving BlackBerry and refocusing it on higher growth areas.
Let us hope that the decision made by the company will give them more and more possibilities. For now, do not expect to see new models and designs from BlackBerry. Instead, expect to see great software that are part of the projects of the said company.
