Blackberry Quits Smartphone Business
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The news of the Canadian Company BlackBerry quitting their smartphone business has got the attention of the masses around the globe. Which means another Giant of phone industry of the last decade (like Nokia) is quitting the smartphone business. This is really a tough decision for any company to take who has still many admirers around the world, but looks like a sensible decision.
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“Removing phone production from in house allows us to focus on security #software for devices & #EnterpriseOfThings”.
This was all expected as BlackBerry (Like Nokia), continuously struggling to get hold of the market with their smartphone range. This official statement shows the intent of Canadian Company to say Good Bye to smartphone business for the time being and focus on the software business.
Well, there are plenty of reasons behind this disheartened decision. The real reason behind this is the declining sales and revenues as well. BlackBerry, which is known for its secure OS and QWERTY phones, could not provide anything substantial to Android or iPhone Storm. BlackBerry’s decision to try out their luck in Android OS proved to be too little too late. The first smartphone of BlackBerry featuring the Android OS was PRIV (released last year), has quite amazing specifications and have a QWERTY board as well. But somehow, this smartphone failed to impress the masses despite having incredible features.
This causes the decline in smartphone sales, as BlackBerry failed to achieve the estimated sales of 5m phones by big margin. Which resulted in a net loss of $372 million in this fiscal year, compared to last year profit of approximately $50 million. On the other hand, the fiscal reports from the software business are positive and suggests handful of Net profit this year.
Actual Reasons:
According to Official statement released by BlackBerry“Removing phone production from in house allows us to focus on security #software for devices & #EnterpriseOfThings”.
This was all expected as BlackBerry (Like Nokia), continuously struggling to get hold of the market with their smartphone range. This official statement shows the intent of Canadian Company to say Good Bye to smartphone business for the time being and focus on the software business.
Well, there are plenty of reasons behind this disheartened decision. The real reason behind this is the declining sales and revenues as well. BlackBerry, which is known for its secure OS and QWERTY phones, could not provide anything substantial to Android or iPhone Storm. BlackBerry’s decision to try out their luck in Android OS proved to be too little too late. The first smartphone of BlackBerry featuring the Android OS was PRIV (released last year), has quite amazing specifications and have a QWERTY board as well. But somehow, this smartphone failed to impress the masses despite having incredible features.
This causes the decline in smartphone sales, as BlackBerry failed to achieve the estimated sales of 5m phones by big margin. Which resulted in a net loss of $372 million in this fiscal year, compared to last year profit of approximately $50 million. On the other hand, the fiscal reports from the software business are positive and suggests handful of Net profit this year.
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According to Blackberry sources
“Their financial foundation is strong and BlackBerry wanted to move their focus on providing security based software solutions.”
With that decision in mind, BlackBerry has already taken steps to outsource their phone production to third party, which will feature the state-of-the-art security software of BlackBerry. A statement from Official Blog of BlackBerry
“It is fitting that Indonesia is the first market where we are licensing our device software, as the country is historically BlackBerry’s largest market for devices and, by far, the most substantial for the BBM messaging software we created.”
That statement shows that Indonesia will be the first country where they launch their services and try to make BlackBerry a true software-led mobility solutions unit and to focus all efforts on providing state-of-the-art security software for devices and the enterprise of things.
But, this does not mean that we will never see a BlackBerry branded smartphone again. The production of the smartphones is stopped for time being and will be restored when they think it is good time to do so. Let us know your opinion that what do you think of this decision of BlackBerry to leave the hardware business.
BlackBerry Future Project:
According to Experts and Analytics this was expected, termed as a sensible and timely decision to quit smartphone business and move their focus to the business they are known for. BlackBerry is quite a famous name in providing security based software in all over the world.According to Blackberry sources
“Their financial foundation is strong and BlackBerry wanted to move their focus on providing security based software solutions.”
With that decision in mind, BlackBerry has already taken steps to outsource their phone production to third party, which will feature the state-of-the-art security software of BlackBerry. A statement from Official Blog of BlackBerry
“It is fitting that Indonesia is the first market where we are licensing our device software, as the country is historically BlackBerry’s largest market for devices and, by far, the most substantial for the BBM messaging software we created.”
That statement shows that Indonesia will be the first country where they launch their services and try to make BlackBerry a true software-led mobility solutions unit and to focus all efforts on providing state-of-the-art security software for devices and the enterprise of things.
But, this does not mean that we will never see a BlackBerry branded smartphone again. The production of the smartphones is stopped for time being and will be restored when they think it is good time to do so. Let us know your opinion that what do you think of this decision of BlackBerry to leave the hardware business.
