As BlackBerry stated earlier it is finally going to happen, BlackBerry’s CEO and Executive Chairman John Chen stated in a statement that soon BlackBerry would be shutting down Smartphone making as well other “internal hardware” projects too.
He stated, “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,”
The company suffered around 372 million dollars of net loss while losing 71% of its shares and gaining only 334 million dollars which is lesser than the loss incurred. This is the report of this year but last year was also not a boom phase for them as they recorded a profit of only 51 million dollars, 24% increment in shares and getting revenue of 490 million dollars.
Here’s the catch in John Chen’s statement, he stated that the company will no longer “make” Smartphone on their “own” but will “outsource” the same to third party developers. This means even though BlackBerry shuts down all of its hardware units but still there would be third party companies still developing Smartphones for the firm just like the BlackBerry Priv as well as the BlackBerry DTEK50 which is generally a rebranded Alcatel Smartphone.
This means Company is still in the market even after losing all hopes of “sales” as their entry into Smartphone market was late as well as very slow which led to a clear disconnection of theirs from customers and making customers revolve around Android or iOS based devices only (you can count Windows too though).
For a firm that is struggling so hard to even to stand in the crowd, even full shutdown news would be no surprise even if it occurs. We just have to watch how far BlackBerry “crawls” to gain users.