Blackberry has officially quit the phone making business 14 years after releasing its first product. A statement released by the company confirmed the development.
Blackberry’s manufacture of hardware, henceforth, will be outsourced to other companies.
The decision stemmed from the lower than expected second quarter earnings of $352 million, which also fell short of Wall Street forecasts.
John Chen, Blackberry CEO said the company’s new direction is software development, including apps and security rather than subcontracting to partners.
“We are focusing on software development, including security and applications. 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”, Chen said.
“We are reaching an inflection point with our strategy, our financial foundation is strong, and our pivot to software is taking hold”, he added.
Blackberry has in recent years recorded poor sales as costumers have opted for Android and iPhone devices.
