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    September 29, 2016

    Death of a dream: BlackBerry will cease making its own phones

    BlackBerry Priv Review

    BlackBerry has formally announced it will cease making new smartphones and will focus on software and security products instead.

    We knew it was coming: BlackBerry has announced it will cease manufacturing its own phones and will endeavour to focus on making software and security products instead.

    BlackBerry devices – as such – will remain; as with the DTEK50 and DTEK60, the company will outsource production to third-party manufacturers. Alcatel has already produced the DTEK50 – a clone of the Alcatel Idol 4 – while the company is already preparing the DTEK60, which is a clone of the Alcatel Idol 4s.

    Read: With the DTEK50, could BlackBerry have doomed itself?

    CEO John Chen, in a statement, cited that “The company plans to end all internal hardware development and will outsource that function to partners… We are reaching an inflection point with our strategy. Our financial foundation is strong, and our pivot to software is taking hold.”

    According to estimated metrics from Gartner, the company captured a measly 0.1% of the mobile market in the second quarter of 2016 – in numbers, that amounts to the sale of just 400,400 units.

    Chen has previously cited that the firm would need to sell 5 million phones a year to remain profitable, and later revised that figure to 3 million. However, it seems BlackBerry’s foray into Android has failed to capture imaginations.

    We reviewed the Priv – the company’s first Android phone which came with a physical and virtual keyboard – and found it to be a merger of two worlds that failed to live up to the hype.

    While the BlackBerry name will live on, we won’t see the company produce another device for the foreseeable future. Instead, the firm will place its bets on its Hub+ subscription software and enterprise offerings.

    Read: The US Senate officially drops BlackBerry for Samsung and Apple

    What are your thoughts? Are you sad to see BlackBerry leave the arena? Be sure to let us know your thoughts in the comments below!

    Follow Bryan Smith on Twitter: @bryansmithSA

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