Analyst suggests BlackBerry will soon step out of the hardware business


BlackBerry has been a struggling company for several years, but their latest Priv seems to have put the company on the right track. That might not be enough to sustain success, though, especially if BlackBerry fails to compete in the extremely important budget-friendly spectrum of the Android market.

The BlackBerry Vienna was rumored to be this other device to complement the Priv, but MWC came and went without any whisper of the keyboard-equipped phone. Some analysts seem to think that this device going missing from the lineup is signaling BlackBerry’s exit from the hardware business.

BlackBerry is already expected to see revenue drop 31% year-over-year, so despite the Priv doing relatively well, the smartphone market is still brutal and dominated by just a handful of bigger names. Outside of hardware, BlackBerry excels in their enterprise software department, so they could theoretically step out of the hardware business and focus only on software. This would drastically cut the amount BlackBerry would need to spend on R&D and would significantly bump up their profit margins, which is the single biggest pain point for a majority of Android OEMs.

We’ve already seen BlackBerry team up with Samsung for their KNOX software, so it’s clear that the company can make Android work for them without having to have a hand in the hardware.

This is all analyst speculation at this point, so there’s no guarantee that BlackBerry will leave the hardware space. Their CEO has already mentioned that another Android-powered BlackBerry phone is coming by the end of the year, so there are arguments on the other end, too. No need to panic just yet.

source: Value Walk

via: Phone Arena

About the Author: Jared Peters

Born in southern Alabama, Jared spends his working time selling phones and his spare time writing about them. The Android enthusiasm started with the original Motorola Droid, but the tech enthusiasm currently covers just about everything. He likes PC gaming, Lenovo's Moto Z line, and a good productivity app.

  • Rajesh Grover

    Which is the worst thing that they will do to them self. Its strong deep rooted brand that needs few corrective steps to take. Needless to say markest have the tendency to forgive and forget and is always ready to embrace technology.