BlackBerry Ltd, famous for smartphone with physical keyboards, said it would no longer manufacture it own phones.
After its long battle with Apple Inc. and Samsung Electronics Co., the Canadian company finally outsourced its smartphone business to oversea partners and focus on more profitable and growing software business.
The company announced Wednesday it started a joint venture with an Indonesian company to make and distribute BlackBerry-branded devices. It is also talking with Chinese and Indian manufacturers to explore more deals.
"We are reaching an inflection point with our strategy," said Chen in a statement. "Our financial foundation is strong, and our pivot to software is taking hold."
BlackBerry said it would focus on software business. The company’s software and services revenue more than doubled in the quarter from a year earlier to $156 million.
“It was inevitable at this point; they didn’t have the unit volumes to sustain the business profitably,” said Matthew Kanterman, an analyst with Bloomberg Intelligence. “This is doubling down on the efforts to focus on software which is really what their strength is.”