BlackBerry’s transition to some software clients are complete. During its Q2 2017 earnings today, Chief executive officer John Chen introduced that the organization “intends to finish all internal hardware development and can delegate that function to partners.” This transformation had been within the works for a while, with Foxconn overtaking the look duties of a few of the company’s future products and TCL, proprietors from the Alcatel brand, building its phones underneath the DTEK brand, but to determine it official is bittersweet with this Canadian.
“Our new Mobility Solutions technique is showing indications of momentum,” stated Chen inside a pr release. “Under this tactic, we’re concentrating on software development, including security and programs.”
BlackBerry’s hardware business continues to be taking a loss for a while, which is only the last nail within the coffin.
BlackBerry introduced revenue of just $334 million for that quarter, lower 47% from last year, and lower dramatically from the times of billion-plus quarters under 3 years ago. It lost $372 million as a result of hit of $147 million from the RAP, or Resource Alignment Program, and $96 million from inventory write-downs.
Quite simply, BlackBerry’s hardware business continues to be taking a loss for a while, which is only the last nail within the coffin. But the organization states that it is transition to some software and services company, building Android-based security solutions for other OEMs, is showing effective, and revenue increases will come across the targets occur early 2016 for that finish of the fiscal year. Chen is really a pragmatist, and it has been warning he would get free from the hardware business should he see no future inside it, which move is the initial step towards recognizing that goal.
An investment necessary for rebranding a TCL-built phone with BlackBerry software programs are minimal, especially, as we have observed in recent several weeks, the organization expects to distribute its security-focused Android software suite to any or all customers running Lollipop and above. As somebody who has adopted BlackBerry because the beginning of BlackBerry OS – I arranged to buy a Bold 9000 in 2008 when everybody else was lusting following the iPhone 3G – I’m a little saddened with this news, and surely not surprised. According to what we have seen in the burgeoning DTEK line, should there be anything to make in in the future, it will not maintain high-margin products such as the Priv that, at $699, are critical achievements and commercial failures.
This news occurs the heels of the announcement by Alcatel parent company TCL of their new TCL 950 flagship, the purported grounds for BlackBerry’s approaching DTEK60, that is likely to be introduced in mid-October.