BlackBerry-ClassicSmartphone company BlackBerry confirmed today that it will cease internally developing its own handsets and rely on partnerships with other companies "for any future hardware efforts," lining up with company CEO John Chen's estimation that he would know by September 2016 whether or not BlackBerry would continue participating in the hardware manufacturing business (via Recode).

Chen said the decision was a monetary one, as the brand's presence continuously dwindles in percentage stakes of the smartphone market, capturing only 0.2 percent of the market as a whole in the fourth quarter of 2015.

“The company plans to end all internal hardware development and will outsource that function to partners,” CEO John Chen said in a statement. “This allows us to reduce capital requirements and enhance return on invested capital.”

“We are reaching an inflection point with our strategy. Our financial foundation is strong, and our pivot to software is taking hold,” Chen said. “In Q2, we more than doubled our software revenue year over year and delivered the highest gross margin in the company’s history.”

Over the summer, the company announced the discontinuation of the BlackBerry Classic as a way to pave the way for more "state of the art devices." Since then, it's released the security-focused DTEK50 smartphone powered by Android, and Chen has stated that the company plans to release two phones by February 2017.

BlackBerry today also announced a net loss of $372 million on revenue of $334 million, but the company noted that it "essentially broke even, on adjusted revenue of $352 million." Coinciding with all these announcements, chief financial officer James Yersh has left the company "for personal reasons," and is being replaced by Steven Capelli, a former executive at Chen's last company Sybase.

The company has been battling against the surging popularity of iPhone and Android smartphones for years, last year announcing a new physical keyboard-enabled, Android-based device on the same day that the iPhone 6s and iPhone 6s Plus launched. It's also been phased out of some popular mobile apps, namely PayPal, which discontinued apps for BlackBerry, Windows Phone, and Amazon Kindle Fire earlier in the year.

Top Rated Comments

levitynyc Avatar
60 months ago
Amazing. Remember when the naysayers were screaming and yelling that the iPhone would flop because it didn't have a physical keyboard.
Score: 19 Votes (Like | Disagree)
sputnikv Avatar
60 months ago
this means something to someone i'm sure
Score: 11 Votes (Like | Disagree)
MrX8503 Avatar
60 months ago
Even at its peak, the BB was still a POS. I will never understand why it was so popular. I was waiting and waiting for someone, anyone to make a better smartphone. That company was Apple.
Score: 6 Votes (Like | Disagree)
Dilster3k Avatar
60 months ago
Remembering when I was a kid in the pre-iPhone days... Man, seeing a Blackberry was a big deal
Score: 6 Votes (Like | Disagree)
madsci954 Avatar
60 months ago
They used to rule the world, now they sweep the streets they used to own.
Score: 5 Votes (Like | Disagree)
Grey Area Avatar
60 months ago
A bold move, for sure.
Courage, even?
Score: 5 Votes (Like | Disagree)

Top Stories

tracking disabled ios 14 5

Analytics Suggest 96% of Users Leave App Tracking Disabled in iOS 14.5

Friday May 7, 2021 1:51 am PDT by
An early look at an ongoing analysis of Apple's App Tracking Transparency suggests that the vast majority of iPhone users are leaving app tracking disabled since the feature went live on April 26 with the release of iOS 14.5. According to the latest data from analytics firm Flurry, just 4% of iPhone users in the U.S. have actively chosen to opt into app tracking after updating their device...
macbook colors 3d black bezels

Prosser: Next MacBook Air Could Come in Colors Similar to iMac

Friday May 7, 2021 6:55 am PDT by
According to Apple leaker Jon Prosser, Apple's upcoming release of the MacBook Air will feature various colors, similar to the colors in the newly released 24-inch iMac. In the latest video of his YouTube channel Front Page Tech, Prosser says the same source who accurately provided him information on the first Apple silicon iMac coming in colors has told him that he recently saw a prototype...
tile amazon sidewalk integration

Tile to Leverage Amazon Echo and Ring Devices to Better Compete With AirTags

Friday May 7, 2021 2:07 pm PDT by
Amazon today announced that it is teaming up with Tile to add Amazon Sidewalk integration to Tile's Bluetooth trackers. Amazon Sidewalk, for those unfamiliar, is a network of Amazon Bluetooth devices that's designed to improve the connectivity of devices like the Ring and Amazon Echo. Tile will now be joining Amazon Sidewalk, and through this integration, Amazon Echo and Ring devices will be ...
Top Stories 59 Feature

Top Stories: Epic Games vs. Apple, Hidden AirTag Mode, Apple Music Hi-Fi, Colorful MacBook Air?

Saturday May 8, 2021 6:00 am PDT by
While we wait for the newly introduced iMac, iPad Pro, and Apple TV models to launch later this month, this week saw the kickoff of the big Epic Games v. Apple trial, with lots of juicy tidbits coming out as the two sides make their arguments. This week also saw some rumors about a Hi-Fi tier for Apple Music, more biometric sensing capabilities for Apple Watch, and timing for the...
zoom app icon

Apple Gave Zoom Access to Special API to Use iPad Camera During Split View Multitasking

Sunday May 9, 2021 2:00 am PDT by
Zoom, a hallmark platform used by millions during the global health crisis, has been given access to a special iPadOS API that allows the app to use the iPad camera while the app is in use in Split View multitasking mode. This case of special treatment was first brought to attention by app developer Jeremy Provost, who, in a blog post, explains that Zoom uses a special API that allows the...
snapchat dark mode

Snapchat Rolls Out Dark Mode on iOS

Wednesday May 5, 2021 1:17 am PDT by
Nearly two years following the release of iOS and iPadOS 13, which included native, built-in, and systemwide dark mode, Snapchat, one of the world's most prominent social media networks, has finally rolled out a dark mode theme for iOS users. Snapchat began testing a dark mode theme of its app design late last year with a small group of iOS users. Now, Snapchat says that as of this week, it...
tile sticker e1570533758981

Tile CEO: 'We Welcome Competition From Apple, But We Think It Needs to Be Fair'

Tuesday May 4, 2021 9:51 am PDT by
Just after Apple announced its AirTags, Tile CEO CJ Prober relayed his concerns about competing with Apple in the tracking space, and said that Tile would ask Congress to investigate Apple's business practices specific to Find My and item trackers. Prober this week did an interview with Bloomberg, where he further expanded on Tile's complaints about Apple and why he feels that Tile is...
fortnite apple logo 2

Epic CEO Tim Sweeney Admits App Store's 30% Cut Is Similar to Consoles, Would Have Accepted Special Deal With Apple

Tuesday May 4, 2021 1:54 pm PDT by
Apple's legal battle with Epic Games is continuing on, and during the second day of the trial, Epic Games' CEO Tim Sweeney continued his testimony against Apple. Sweeney was grilled by Apple's lawyers, and made several points seemingly favorable to Apple. In addition to mentioning how he prefers Apple's iPhone and values Apple's privacy policies that he's aiming to dismantle, Sweeney...
signal instagram ads3

Signal Shares the Instagram Ads Facebook Doesn't Want You to See

Wednesday May 5, 2021 1:29 am PDT by
Encrypted messaging app Signal has had a series of Instagram ads blocked from the social media platform, after it attempted to show users how much data the Facebook-owned company collects about them and how it's used to push targeted ads. In a blog post, Signal described how it generated the ads to show users why they were seeing them, simply by declaring upfront the information that the...
iphone 12 preorder purple

Apple Begins Transition to Randomized Serial Numbers With Purple iPhone 12

Wednesday May 5, 2021 9:17 am PDT by
MacRumors previously reported about Apple's plan to switch to randomized serial numbers for future products starting in early 2021, and this transition has now started with the new purple iPhone 12 model in multiple countries. With assistance from Aaron Zollo, host of the YouTube channel ZolloTech, we can confirm that the purple iPhone 12 released last month has a new 10-character serial...