Advertisement
Business

Blackberry to stop making its own phones

Blackberry phone
A man in San Francisco checks email on his Blackberry in 2007.
(Justin Sullivan / Getty Images)

Once-dominant smartphone maker Blackberry Ltd. said it will stop developing its phones in-house and shift that work to outside companies so it can focus on software manufacturing.

In a regulatory filing Wednesday, the Canadian company said it plans to “end all internal hardware development” on its Blackberry brand phones and “outsource that function to partners.” 

“This allows us to reduce capital requirements and enhance return on invested capital,” Chief Executive John Chen said in the filing.

Blackberry will focus on developing “state-of-the-art security and device software,” Chen said in a call with investors Wednesday morning.

Advertisement

Wednesday’s move is part of Chen’s efforts to turn around the company, once a highly profitable global leader in smartphone technology that has been displaced by products from Apple, Samsung and others.

The Associated Press was used in compiling this report.

samantha.masunaga@latimes.com

For more business news, follow me @smasunaga

Advertisement

ALSO

American Apparel’s top lawyer becomes CEO as sale rumors swirl

California’s housing shortage will hamper the economy, reports say

Republicans brand another villain in Wells Fargo scandal: the Consumer Financial Protection Bureau


Newsletter
Get our weekly California Inc. newsletter
Advertisement