October 5, 2016 7:17 pm | Updated 4 years ago.
Once the most dominant devices, the BlackBerry handsets are being outsourced as reported by the company recently. BlackBerry Ltd. would now solely focus on software making, and will be pulling out from the global Smartphone business race.
Blackberry will now end all their internal hardware development processes and instead outsource it to various partners. This decision cheered the Investors and BlackBerry shares were up by nearly 5% and priced at $8.27 on Nasdaq.
Chief Executive John Chen told reporters outsourcing “is the best way to drive profitability in the device business.” The company will now focus on how to turn growth.
Mr. Chen added that BlackBerry will get a fixed royalty for every new handset which is sold by the Indonesian joint venture and also is in talks with other third parties to build additional devices.
Simultaneously, BlackBerry also announced the exit of the Chief Financial Officer James Yersh due to some personal reasons and he will be succeeded by Mr. Steven Capelli by the end of October. He also worked with Mr. John Chen in previous roles at Sybase.
Date of Publication: Sept. 28, 2016