BlackBerry will not make any more of its signature smartphones itself. It was one of the world's largest smartphone makers but its global market share has fallen to about one percent as other devices took over.
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BlackBerry built a reputation for innovative smartphone technology and in 1999 rolled out its RIM 950 allowing on-the-go wireless email. The move announced on Wednesday signals a strategic shift for the company.
The Canadian company said it will now focus on growing its software business. "We believe that this is the best way to drive profitability in the device business," chairman and CEO John Chen said in a statement on Wednesday.
All development for BlackBerry-branded phones is to be left to the company's partners, which will license its technology and brand. It plans to make the move by February 28, when the company's financial year ends.
Blackberry has signed one agreement already with a telecom joint venture in Indonesia - BB Merah Putih. The move will reduce BlackBerry's expenses by cutting out the need to carry inventory and by lowering the number of staff and reducing the amount of equipment it needs to hold.
The introduction of the iPhone in 2007 by Apple showed that phones can handle much more than email and phone calls. Blackberry was late in overhauling its operating system to compete. It now holds a small fraction of the US smartphone market. In the second quarter the company sold about 400,000 smartphones, compared to Apple selling 40 million iPhones in its most recent quarter.
BlackBerry announced this year it was killing off its Classic smartphone with a physical keyboard as part of a modernization of its lineup. It had hoped its first Android-operating smartphone launched last year would help restore the company to its former glory, but sales have been weak.
The company's revenues fell to $334 million (297 million euros) from $490 million last year.
jbh (AFP, AP)
The rapid rise of the smartphone
Billions of people the world over couldn't imagine life without a smartphone. It's been 20 years since the first such gadget hit the markets. Here are some quirky facts and developments you might not have known.
Image: DW/M.Bösch
Impressive dinosaur
This is what the world's first smartphone looked like. The Nokia 9000 Communicator had the features of a PC, complete with office software, Web browsing and fax function. Sales started on August 15, 1996. It cost around 1400 euros - or around half that with a contract.
Image: dpa/Nokia
Lightweight, but powerful
Modern-day smartphones have come a long way. But the fact that they weigh a lot less than earlier models does not mean they can do less. In fact, today's devices have millions of times the computing power of the computers used by Apollo 11 to land on the moon.
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Unexpected side effect
There are tons of apps to ensure smartphone users never have a dull moment, but some pieces of code can also be extremely useful for authorities. Indonesians are using donated devices to detect illegal logging through software that listens for the sound of chainsaws and then triggers an alert.
Image: Getty Images
Phone turned weatherman
Researchers from networking group OpenSignal have discovered that the sensors in Android-based smartphones designed to measure battery temperature, light intensity and pressure can also be used to come up with really accurate weather reports.
Image: picture-alliance/dpa
Pee power
Scientists from Bristol, England, have developed a fuel cell that can generate power for smartphones "from a single visit to the toilet." You can get three hours of phone calls from 600 milliliters of urine, with bacteria turning the liquid into electricity. On a somewhat related note, close to 100,000 smartphones are dropped into toilets annually by Britons alone.
Image: Imago
Roaming about
Celine Aarons from South Florida made headlines a couple of years ago when she received the biggest ever smartphone bill. She had to pay $201,000 (180,000 euros) after a message texting marathon while on holiday in Canada. Ever heard of roaming charges?
Image: Imago
Irreversible success story
There are now about 1.9 billion smartphone users globally, and that number is still rising steadily. Worldwide 349 million units were sold in the first quarter of this year alone, marking a 3.9 percent increase over 2015. The hottest-selling phone was Samsung's Galaxy S7, with Apple's iPhone 6s and 6s Plus coming in a close second.