Why BlackBerry Has Announced it Will Stop Making Hardware

BlackBerry has announced that it will stop developing internal hardware by January 2017.

The change comes as CEO John Chen follows through on his promise to cease hardware development by this September if the company couldn’t make it a profitable venture by this point in time. BlackBerry now plans to focus on being a software company specializing in mobile security.blackberry-dtek50-19

Consumers’ less than enthusiastic reception of the company’s latest smartphone, the BlackBerry Priv, was a signal that this day would likely come.

The change is welcome and something experts say, investors have been waiting for, for a long while.

Chen has argued that he needed to firmly develop and establish the company’s new identity as a software dynamo before ending the business model it was following, something which has taken time to do.

It’s estimated that BlackBerry’s switch will save the company an estimated $100 million to $150 million per quarter and according to financialpost.com, it will free up resources, enabling engineers to focus their energies on perfecting software related to enterprise mobility management, fleet tracking and connected cars.

For a brief history of BlackBerry phones, click here.

Comments are closed.