BlackBerry has announced a plan to outsource all internal hardware development.
BlackBerry chairman and CEO John Chen made the announcement Wednesday morning as the company issued its latest financial report.
It’s a major move for the Waterloo-based company that made its early reputation on innovative smartphone technology.
It comes two months after the company announced it would stop making the BlackBerry Classic. The company had been under pressure to get out of its hardware business completely to focus on software technology.
Chen, who became CEO in 2013, had said he would decide by September on the fate of the hardware unit.
On Wednesday Chen said ending internal hardware development will reduce BlackBerry’s capital requirements and enhance return on invested capital.
The company recorded a US$372 million net loss in the three months ended Aug. 31.
Revenue, which is reported in U.S. dollars, was $334 million or $352 million after adjustments that was below analyst estimates of $391.75 million.
Chen said on Monday he was two-thirds of the way toward achieving his goal of turning the Canadian technology company’s fortunes around.
“We have made investment over a billion-plus, all in software, all in security, and now we need to execute it,” Chen said.