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BlackBerry to Kill Off Smartphone-Making Business

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Sep 28, 2016, 7:11 AM   by Eric M. Zeman   @phonescooper

BlackBerry today said it will no longer make and sell its own smartphones. Instead, it will rely on original device manufacturers to design and make devices that will carry BlackBerry branding and software. The company employed this strategy earlier this year with the DTEK50, which was a rebranded Alcatel Idol 4. BlackBerry uses Google's Android platform as a base and hardens it with respect to bugs and security. It then packages this with its BlackBerry Suite of apps and services. "We are reaching an inflection point with our strategy," said CEO John Chen. "Our financial foundation is strong, and our pivot to software is taking hold. Under this strategy, we are focusing on software development, including security and applications. The company plans to end all internal hardware development and will outsource that function to partners." BlackBerry calls this its Mobility Solutions strategy. The company has already forged a licensing agreement with a telecom joint venture in Indonesia. BlackBerry announced the news along with its fiscal 2017 second quarter earnings report. The company generated $352 million in revenue, of which $156 million came from its software business.

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