Democratic nominee Hillary Clinton’s preferred phone, the BlackBerry, is going to stop making mobile phones and instead move its production to entirely external companies, according to recent reports.
The Canadian phone maker announced this move in its earnings report released Wednesday. BlackBerry will partner with an Indonesian telecom company that will take over the production of the mobile devices.
Once the go-to choice for Wall Street, celebrities, and even Clinton because of its estimable security system, BlackBerry has taken a back seat in the market due to its failure to keep up with Apple iPhones and Samsung Galaxy models.
Since joining the firm in 2013, CEO of Blackberry John Chen has made strides to turn the company around. Chen moved to make the phones more secure, feature many new applications, and a host of other measures. Thus far, all efforts have led to the company remaining in the red, CNN reports.
The company reported a net loss of $646 million in 2013, but reported a $660 revenue for the fourth quarter of 2015. Despite reporting a profit in 2015, the company still reported a negative $12 million hit due to currency fluctuations, according to data.
Chen told CNBC in April that if “by September, I couldn’t find a way to get there (out of debt), then I need to seriously consider being a software company only.”
It appears the time has come for Chen to make that move.
Chen said Wednesday that under the new company strategy, BlackBerry will focus “on software development, including security and applications. The company plans to end all internal hardware development and will outsource that function to partners. This allows us to reduce capital requirements and enhance return on invested capital.”
Following the announcement, the company’s shares are down 0.6 percent.
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