BlackBerry to stop hardware production

BlackBerry on Wednesday announced it will no longer making phones. However, it does not mean a termination of the phone. BlackBerry’s partner will take over the manufacturing part. BlackBerry will concentrate on software and solution development.

BlackBerry

CEO John Chen said “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”

Just like Nokia’s former CEO once said “we didn’t do anything wrong, but somehow, we lost”. The same tragedy happened on BlackBerry. There is nothing wrong with BlackBerry phones. However, the release of iPhone and Google’s counterplay Android phone flipped the entire industry before everyone else realized what just happened.

The move is a wise decision based on the current status of the company. BlackBerry may survive by transforming into a service or app. 10 years from now, we might not see a BlackBerry phone anymore, but someone somewhere will have BlackBerry Messenger installed.

 

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