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Shocking News BlackBerry will no longer make smartphones

It’s finally happening, BlackBerry is shutting down its hardware business. That means it will no longer make smartphones. “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,” said John Chen, Executive Chairman and CEO, BlackBerry.

It is worth noting that this only means that BlackBerry will stop manufacturing its own smartphones. However, third parties may still manufacture BlackBerry branded phones, while the company handles the software side of things. So, you may still see Android phones from BlackBerry, like the BlackBerry Priv and DTEK50.

BlackBerry's fall from dominance prompted many of its customers in the enterprise market -- once a stronghold for the company -- to switch to iPhones and Android devices. Last summer, the U.S. Senate finally dropped BlackBerry.

The shift to software has been part of Chen's strategy since he took over the CEO role nearly three years ago. The move to software gives BlackBerry the chance to improve their margins and generate recurring revenue, says BGC Partners analyst Colin Gillis.

"The decision to outsource the last bit of smartphone manufacturing is just the final nail in to their hardware business," says Gillis. "It’s long been a business in decline, and their future is in software.".

The information above was revealed in a BlackBerry press release about its Q2 results for fiscal 2017. The move is in line with the company’s earlier statements that Android is its last attempt at the smartphone market.