BlackBerry is closing smartphone business due to $670 million loss

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BlackBerry is closing smartphone business; $670 million loss reported

BlackBerry, the Canadian mobile company is facing a lot of trouble in its smartphone business. The company sold just 5 lakh phones globally in the first financial quarter of 2016-17. As in the previous quarter it was around 6 lakh. BlackBerry is reporting a $670 million loss which is its biggest loss in over two years. BlackBerry closing smartphone business after this huge lose. The most of loss was down to restructuring charges. The sales of smartphones also fell to $400 million, down 39 per cent on a year. BlackBerry CEO John Chen told financial analysts during a conference call:

“I really, really believe that we could make money out of our device business,”

The statement of BlackBerry CEO clearly hinting that Blackberry is closing smartphone business in near future. Last year, BlackBerry tried to revive its handset business by launching Priv smartphone running Google’s Android operating system. But the sales figures were very disappointing. BlackBerry has said it will decide whether to stop making phones for good by September. The company is facing huge competition with Chinese manufacturer like OnePlus and Xiaomi in international market. Chen said at BlackBerry’s annual meeting.

“The device business must be profitable, because we don’t want to run a business that drags onto the bottom line, I don’t personally believe handsets will be the future of any company. Our software business continues to achieve scale and traction, resulting in robust growth and increasing market share.”

BlackBerry recently announced its partnership with HCL Infosystems to expand the channel and distribution network for BlackBerry enterprise software products and services in India. “By working with an established partner like HCL Infosystems in India, we aim to create growth for our partners while giving our customers wider access to our leading suite of enterprise solutions with world-class support, helping organizations advance their mobility strategies,” said Richard McLeod, Vice President, Global Channels at BlackBerry, in a statement.

The popular instant messaging service WhatsApp also decided to end support for BlackBerry OS 10 services by the end of 2016. Facebook is also leaving the BlackBerry platform after announcing recently to discontinue support of its application programming interfaces (APIs) for BlackBerry. So finally BlackBerry is closing smartphone business after September 2016. We won’t be able to see Blackberry’s smartphone anymore.

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