(THEORYLAMP) — Canada —Blackberry announced today that it would stop the production of its handsets so that it can focus more on the development and marketing of its software and security products. The production of Blackberry phones will not be halted however and the company will outsource the production of the phones to an Indonesian manufacturer.
Blackberry rose to prominence in the early days of the smart phones where it was the champion of the market and the default choice of phone for businessmen and high profile individuals. The phone has a long history associated with it, being at the center of high profile scandals where the ability of the phone to encrypt the data with certainty via its enterprise servers made it immensely popular in the corporate and business sector.
Blackberry is the original propagator of the smart phone idea and was eons ahead of other manufacturers in quality, durability and technology back in the early days. However, the company was unable to keep up with the changing market environment and the famous Blackberry OS fell far behind its time as the Android OS and the iOS took center stage in the smart phone war. Regardless of how its smart phone business goes, Blackberry is still moving ahead with its software business and is going to be focusing on it as it is currently the main source of earning for the company.
The company has displayed a massive dip in its capitalization and worth once reaching a market value of $80 billion and now falling down to a mere $4.3 billion. The company only recently launched the DTEK50 which featured very similar functionality and looks to another phone in the market. The market did not take very well to the launch but the company saw this is a practice in the process of outsourcing manufacturing.
The move away from the traditional business of the company has been witnessed since CEO John Chen took over a few years ago. Since then Chen has been working under full throttle to shift the company towards a profitable direction. Even though investors are quite satisfied with his maneuvers it still remains to be seen whether Blackberry will be able to catch up to the rest of the market in terms of profitable earnings – especially after ending the product offering which got it recognized as a global player.