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BlackBerry stops making phones, to focus on software


It’s official. BlackBerry, the Canadian company that fancied the smartphone and addicted legions of road warriors to the “crackberry,” has stopped creating its picture handsets.
Finally yielding defeat in a battle it had in the past lost to Apple and Samsung natural philosophy, BlackBerry is handing over production of the phones to overseas partners whereas it turns its full attention to the additional profitable and growing code business.
BlackBerry same on Wednesday it struck a contract with an associate degree Indonesian company to create and distribute BlackBerry-branded devices. additional deals area unit within the works with Chinese and Indian makers. it is the rationalization of a move long within the creating, ever since Chief officer John bird genus took over nearly 3 years gone and outsourced some producing to Foxconn Technology cluster. BlackBerry, primarily based in Waterloo, Ontario, gained the maximum amount as four.3 percent to C$10.86 because the market opened in Toronto. it had been the largest intraday jump since July. obtaining the money-losing smartphone business off BlackBerry’s books can create it easier for the corporate to systematically hit profitableness. it’ll still style smartphone applications associate degree an extra-secure version of Alphabet’s humanoid software.
“We area unit reaching associate degree inflection purpose with our strategy,” bird genus same in a statement asserting the shift likewise as quarterly earnings. “Our monetary foundation is powerful, and our pivot to code is prehension.”
The new strategy can improve margins and will truly increase the number of BlackBerry-branded phones sold , Chen said, as manufacturer’s license the name that also holds hefty sway in rising markets like Indonesia, African country, and African nation. though BlackBerry’s latest phone, the DTEK50, was already virtually fully outsourced, the move could be a huge symbolic step for a corporation that after reached a market price of $80 billion.
When the BlackBerry 850 was released in 1999, it married a practical keyboard with e-mail capability and primarily ushered in the modern smartphone era.
With a proprietary software known for its watertight security, it had been a moment hit with business executives and even heads of state, together with President Barack Obama.
The phones were present and extended the workday onto commuter trains and into restaurants and houses.
Then, in 2007, enter the iPhone with its touchscreen interface and app store. folks initially same they did not need to administer up BlackBerry’s keyboard and ease. but the lure of apps eventually sent the majority its users to phones running humanoid or iOS.
“It was inevitable at this point; they did not have the unit volumes to sustain the business productively,” same Matthew Kanterman, associate degree analyst with Bloomberg Intelligence. “This is doubling down on the efforts to concentrate on code that is actually what their strength is.” BlackBerry shipped solely four hundred,000 phones in its business second quarter, 0.5 what it sold with in the same amount last year. Apple sold quite forty million iPhones half-moon.
BlackBerry same code and services revenue quite doubled within the quarter from a year earlier to $156 million. Still, code revenue was down from the previous quarter’s $266 million, that bird genus blasted on patent licensing deals that did not carry over into the quarter.
Adjusted earnings were at break-even, compared with analysts’ estimates for a loss of five cents. Revenue within the second quarter was $325 million, falling in need of analysts’ projections for $390 million. For the total year, BlackBerry expects a loss of five cents or to hit break-even, compared with what it same was a current accord of a 15-cent loss.

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