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
69 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
69 months ago
this means something to someone i'm sure
Score: 11 Votes (Like | Disagree)
MrX8503 Avatar
69 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
69 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
69 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
69 months ago
A bold move, for sure.
Courage, even?
Score: 5 Votes (Like | Disagree)

Popular Stories

maxresdefault

Review: M1 Max MacBook Pro After Three Months

Wednesday January 19, 2022 11:30 am PST by
It's now been a few months since the M1 Pro and M1 Max MacBook Pro models launched in October, and MacRumors video editor Dan Barbera has been using one of the new machines since they debuted. Over on the MacRumors YouTube channel, Dan has shared a three month review of his MacBook Pro to see how it has held up over time and how it's changed his workflow. Subscribe to the MacRumors YouTube ...
airpodsinear 1

AirPods Save Woman's Life With Feature Everyone Should Know

Friday January 21, 2022 2:13 am PST by
Apple's AirPods have been credited with saving a woman's life after a potentially fatal fall, People reports. When a 60-year-old florist in New Jersey tripped and hit her head in her studio, she lost consciousness and awoke heavily bleeding. With nobody around to call for help, she realized she had her AirPods in, and used a "Hey Siri" command to call 911. An operator was able to stay on the ...
iphone se 2020 top

New iPhone SE Likely to Launch in April Based on Production Timeframe

Wednesday January 19, 2022 6:44 am PST by
Apple suppliers will begin producing display panels for the third-generation iPhone SE this month, with final assembly of the device likely to start in March, according to information shared by display industry consultant Ross Young. Based on this production timeframe, Young believes the third-generation iPhone SE is likely to launch in the second half of April, or perhaps in early May at...
iphone 13 earpods

Apple to Stop Including EarPods With Every iPhone Sold in France From Next Week

Friday January 21, 2022 3:21 am PST by
Apple will no longer include EarPods with every iPhone sold in France, starting on January 24, according to a notice posted by a French carrier (via iGeneration). Apple was previously required to include EarPods in the box with the iPhone due to a French law that required every smartphone sold in the country to come with a "handsfree kit," but the law has now been changed in favor of reducing the ...
Spring 2022 Apple Products Feature

New iPad Air, Macs, and iPhone SE With 5G Likely to Be Announced at Apple Event This Spring

Thursday January 20, 2022 8:32 am PST by
Earlier this week, Bloomberg's Mark Gurman tweeted that Apple "will be holding a spring event" to announce a new iPhone SE and other hardware. In a recent edition of his newsletter, Gurman said the event is likely to occur in March or April. Gurman did not elaborate on what "other hardware" will be announced at Apple's purported spring event, but rumors suggest at least four products are...
appleeducation

Apple's US Education Store Now Requires Institution Verification to Buy Discounted Products

Wednesday January 19, 2022 2:22 am PST by
Apple is now requiring that customers in the United States verify that they're active students, teachers, or staff members at an educational institution in order to access education discounts on products. Previously, little verification was needed for customers to purchase products through Apple's education store in the United States. Apple's education stores offer models of the iPad and Mac ...
AirPods 3 New Firmware Feature

Apple Updates AirPods 3 Firmware to Version 4C170

Tuesday January 18, 2022 11:46 am PST by
Apple today released a new 4C170 firmware update for the AirPods 3, an update from the prior 4C165 that was made available in December. Apple does not offer details on what's included in new firmware updates for the AirPods‌, so we don't know what improvements or bug fixes the new firmware brings. There is no standard way to upgrade the ‌AirPods‌‌ software, but firmware is...
appleprivacyad cleaned

iOS 15 Patched Security Hole That Potentially Exposed Users' Private Apple ID Information to Third-Party Apps

Thursday January 20, 2022 3:32 am PST by
Apple patched two significant security vulnerabilities when it released iOS 15 that could have potentially exposed users' private Apple ID information and in-app search history to malicious third-party apps and allowed apps to override user Privacy preferences, Apple has revealed in a recent support document update. With most iOS, macOS, tvOS, and watchOS updates, Apple provides a list of...
apple watch series 7 aluminum colors yellowbg

Apple Watch Charging Bug Fixed in watchOS 8.4 Release Candidate

Thursday January 20, 2022 4:01 pm PST by
The watchOS 8.4 release candidate that was seeded to developers and beta testers this morning addresses an ongoing bug that could cause some Apple Watch chargers not to work properly with the Apple Watch. Back in December, we reported on a growing number of charging issues that Apple Watch Series 7 owners were facing. Since watchOS 8.3, there have been a number of complaints about...