Blackberry CEO John Chen confirmed that the company will no longer manufacture its own devices, and will focus on software development, including apps and security instead.
According to USA Today, the company made its revelation about discontinuing production during its second quarter earnings report in which its revenue of $352 million missed Wall Street forecasts compiled by S&P Global Market Intelligence.
Blackberry's shares closed at $8.31, which is up to 5% after its second-quarter sales dipped to 400,000, while Apple sold over 40.4 million iPhones on its latest quarter.
In line with this, Chen announced that the company was reaching an inflection point with their strategy. He also said that Blackberry's financial foundation is strong, and their turn to software development is taking hold.
People will always remember Blackberry as a cell phone with QWERTY keyboard, and was once dominant in the technology world with more than 50% of the global market, with its strict security software. It once soared high like Samsung and Apple in the global market.
When other companies started manufacturing touch screen phones with different software, the game has changed for Blackberry.
Analyst said that cell phone users were lured to using devices that does not just offer emailing and messaging capabilities, but browsing and being able to download and use multiple applications as well.
Though faced with struggles in difficulties with the birth of other phone manufacturers which took their phone sales down, the Blackberry CEO still remains positive.
Chen said in a statement that they were really more worried about the 'smart' of the smart phone and not about the 'phone' part of it, as reported by CNBC.
The Blackberry CEO also said in his statement that he truly believes that money is in the 'smart' and that is why the company chose to pivot to software development.
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