Blackberry has said it will no longer produce mobile phones shifting its focus to developing GAAP Software and Services.
The decision comes off the back of its 3rd quarter financial results released earlier today. Blackberry recorded 89% growth in its GAAP Software and Services, a figure that has convinced the company to shut down its struggling hardware division.
Blackberry’s attempt to regain market share in the mobile device sector by incorporating Android into its devices was fruitless, with the company deciding to outsource any future mobile device design and build. The company’s CEO John Chen offered the following remarks:
“Our new Mobility Solutions strategy is showing signs of momentum, including our first major device software licensing agreement with a telecom joint venture in Indonesia. 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. This allows us to reduce capital requirements and enhance return on invested capital”.
Blackberry used to be a force to reckon with, but it failed to evolve following meteoric rises of Apple’s iPhone and Samsung’s Android Devices. Its failure to adapt its Blackberry OS to consumer trends saw it slowly lose its reputation and market share.
The Blackberry OS was considered the most secure OS on the market, with end-to-end encryption on all communication methods, to the point where it was blocked from entering the Zimbabwe market with its famous Blackberry Internet Service (BIS) and Blackberry Messenger (BBM).
We suspect that more companies may start to abandon device making to focus on software development as Samsung and Apple continue to dominate markets leaving no room for smaller competitors.
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8 comments
whats gaap software?
And then they were 2. RIP Blackberry.For some reason I believe the author of this article does not know what GAAP means either. He is Googling right now. Confused. It normally means Generally Accepted Accounting Practices but in this case I don’t know what it means either and I guess that’s the point. Blackberry and Yahoo are all sinking ships and this is jargon for we are closing shop and turning into zombies just like Nokia.
Nokia was messed up by Micro$haft big time! But they are now coming back via another name HMD global.
Is this true?
Very true check this out:
http://www.knowyourmobile.com/mobile-phones/nokia-c1/23369/nokia-c1-leaks-running-android-windows-10-ahead-q4-2016-launch-A1
@ Techzim. Are you guys serious. GAAP software? BlackBerry is just stopped hardware production and now doing software chete. The GAAP part is just the Generally Accepted Accounting Practice (US equivalent to IAS) they use to report accounting information.
GAAP software revenue/Profit/margins means they are using GAAP as an accounting principle not that they are developing Accounting principles software! !!!
Google
What BB have one is to slow down its imminent death. Its business strategy from now on going forward is to be a softeware company selling mobile management software to business and governments. Looks good on paper but this is a feature which is already available in every mobile you buy and and every corporate firewall you get.
The other strategy Mr Chen have taken is to lease out hardware manufacturing, and charging royals to companies. BB will need a large portifolio of patency to make a living wage from this, otherwise they will have to downsize its workforce.