Is BlackBerry giving up on the devices business? In brief, it is not. CEO of BlackBerry John Chen writes: “I want to assure you that I have no intention of selling off or abandoning this business any time soon.? “I know you nonetheless love your BlackBerry devices. I love them too and I know they produced the foundation of this company. Our focus today is on finding a method to make this business financially rewarding.” He finishes on: “We’ve not given up and we’re not leaving the devices business.” So there you have it.
BlackBerry has been having a tough time of items lately, as the company made a net loss of $423 million last quarter alone. However, Chen is committed to turning the company around, even if that implies abandoning smartphones completely. As part of an interview last Wednesday with Reuters Chen claimed that “if I cannot make money on handsets, I will not be in the handset business”. He also claimed that one way or another he’d be compelled to make the decision soon. So what would it take for BlackBerry to make income on handsets? Around 10 million shipped smartphones per year apparently, which is not an enormous quantity, particularly once you consider that back in 2011 BlackBerry shipped 52 million devices.
Sinking ship? However the company is a lot weaker than it once was, down from a 20% smartphone market share in 2009 to less than 2% now. Even if the company does continue with consumer smartphones it does not sound like that side of the business will be such a focus any more, as Chen claimed that “we are not going to spend any more income to preserve the latest version of Angry Birds.” Going forward the company will focus on business clients instead. There is hope for BlackBerry yet, as Chen appears to be happy with the company’s progress so far.