Blackberry, the pioneer of modern smart phones, has announced that it would no longer manufacture handsets. It would now concentrate on its core business – applications, security and software.
The cessation comes in the wake of tumbling profits.
BlackBerry, which used to dominate the market with 80% user base, has slipped from USD 80 million revenue to USD 19. The loss arises from competition with Apple and Samsung products which have more innovative features and app stores.
With the release of their flagship product in the late 1990s, BlackBerry was the first company to invent a phone with full QWERTY keyboard and email services. These capabilities made it popular with businesses and even leaders like Barack Obama.
Despite its growth profitability and popularity, BlackBerry failed to invest in innovation. Eventually, Apple and Samsung took over the market.
The company will now outsource its phone manufacturing sector to Asian companies and revert to its core business of software development.