so sad... 😞

BlackBerry's transition to a software company is complete. During its Q2
2017 earnings today
<http://ca.blackberry.com/content/dam/bbCompany/Desktop/Global/PDF/Investors/Documents/2017/q2fy2017/Q2FY17_Earnings_Press_Release_Final.pdf>,
CEO John Chen announced that the company "plans to end all internal
hardware development and will outsource that function to partners." This
change was already in the works for some time, with Foxconn taking over the
design responsibilities of some of the company's future devices
<http://crackberry.com/blackberry-announces-five-year-strategic-partnership-foxconn>
and TCL, owners of the Alcatel brand, building its phones under the DTEK
brand <./blackberry-dtek-50-review>, but to see it official is bittersweet
for this Canadian.


<http://www.androidcentral.com/blackberry-officially-getting-out-phone-hardware-business>

"Our new Mobility Solutions strategy is showing signs of momentum," said
Chen in a press release. "Under this strategy, we are focusing on software
development, including security and applications."

BlackBerry's hardware business has been losing money for some time, and
this is just the last nail in the coffin.

BlackBerry announced revenue of just $334 million for the quarter, down 47%
from a year earlier, and down sharply from its days of billion-plus
quarters less than three years ago. It lost $372 million due to a hit of
$147 million from its RAP, or Resource Alignment Program, and $96 million
from inventory write-downs.

In other words, BlackBerry's hardware business has been losing money for
some time, and this is just the last nail in the coffin. But the company
says that its transition to a software and services company, building
Android-based security solutions for other OEMs, is proving successful, and
revenue increases will meet the targets set in early 2016 for the end of
this fiscal year. Chen is a pragmatist, and has been warning that he would
get out of the hardware business should he see no future in it, and this
move is the first step towards realizing that goal.

The investment needed in rebranding a TCL-built phone with BlackBerry
software is minimal, especially, as we've seen in recent months, the
company intends to distribute its security-focused Android software suite
<http://www.androidcentral.com/blackberry-expands-hub-suite-applications-android>
to all users running Lollipop and above. As someone who has followed
BlackBerry since the early days of BlackBerry OS — I lined up to purchase a
Bold 9000 in 2008 when everyone else was lusting after the iPhone 3G — I am
a little saddened by this news, but certainly not surprised. Based on what
we've seen from the burgeoning DTEK line, if there's any money to be made
in the coming years, it's not going to be in high-margin devices like the
Priv that, at $699, are critical successes and commercial failures.

The news comes on the heels of an announcement by Alcatel parent company TCL
<http://www.gsmarena.com/tcl_950_goes_official_brings_55_amoled_s820_and_stereo_speakers-news-20754.php>
of its new TCL 950 flagship, the purported basis for BlackBerry's upcoming
DTEK60
<http://www.androidcentral.com/blackberry-dtek60-images-leak-ahead-official-unveil>,
which is expected to be announced in mid-October.



Read full article at
http://feedproxy.google.com/~r/androidcentral/~3/iCAkI8PJKLY/blackberry-officially-getting-out-phone-hardware-business

@ZForce

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