Earlier this week, BlackBerry announced that it would outsource the future development of its hardware to its partners, instead focusing on growing the software side of its business. Founded in 1984 and based in Waterloo, Ontario, BlackBerry operates in North America, Europe, Middle East and Africa, Asia Pacific and Latin America.
Blackberry may have made a decision to stop making its iconic handsets, but that does not mean the gadgets will disappear, especially in places where they are still popular.
BlackBerry, which a decade ago was among the world's largest smartphone makers, has seen its global market share slip to less than one percent as Apple and Android devices have dominated.
BlackBerry (NASDAQ:BBRY) will no longer be making its own phones. While Tan said Tiphone will manufacture phones for the Indonesian market, discussions on the venture are continuing with BlackBerry. CEO John Chen said in a conference call with analysts, "We believe that this is the best way to drive profitability in the device business".
BlackBerry, which reports its results in USA dollars, said it had a $372 million net loss in the three months ended August 31, equivalent to 71 cents per share, but broke even after excluding one-time items. The handset division had about $35 million in operating expenses in the second quarter. "Under James' leadership we have achieved excellent financial discipline, a key accomplishment as part of our overall turnaround and transformation strategy for BlackBerry". The company has reached a "good inflection point where our financial picture is stable and our pivot to software taking hold", Chen claimed. Excluding non-recurring items, adjusted per-share earnings were breakeven, compared with the FactSet consensus for a loss of 5 cents per share. "In Q2, we more than doubled our software revenue year over year and delivered the highest gross margin in the company's history". BlackBerry devices were popular for almost a decade; users couldn't part with them, leading to the term "CrackBerry".