BlackBerry Announces That It Will Stop Making Its Own Phones

Itโ€™s the end of an era for BlackBerry, as the once towering smartphone maker has announced that it will stop making its own phones in favor of a continued shift to focusing on software.

โ€œThe company plans to end all internal hardware development and will outsource that function to partners,โ€ BlackBerry CEO John Chen revealed in a press release. โ€œThis allows us to reduce capital requirements and enhance return on invested capital.โ€

Chen had previously said that BlackBerry would quit smartphone development if that part of the business was unable to turn a profit. Chen said that โ€œour pivot to software is taking holdโ€ โ€“ and, indeed, pieces of BlackBerry software are already available for Android devices besides BlackBerryโ€™s.

While, in 2010โ€™s third quarter, a mammoth 37.3% of US smartphone subscribers used a BlackBerry device, the iPhone and Android gradually chipped away at its popularity in the following years. By 2016โ€™s first quarter, BlackBerryโ€™s US market share had fallen to just 0.8% โ€“ leaving the company joining Nokia and Microsoft as a major casualty of the iPhoneโ€™s rise.

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