After more than a year-sales disappointing, BlackBerry could be preparing for some changes at the end of this month. In particular, the company could disappear from the mobile market in brief.
according To a report in Motley Fool, the company could announce an exit from the market as soon as the 28th of September, the day before announcing the earnings for the second quarter.
The smart phones of BlackBerry have less than 1% of the global market; its hardware division accounts for more than 65% of its research and development expenses; and according to Wall Street analysts, following its current trajectory, the company will lose money in 2017 and 2018.
At a meeting of shareholders of June, CEO John Chen said he does not “believe personally that the devices are going to be the future of any company,” and that he would make a phone call in September to find out if BlackBerry will continue to invest in smart phones.
Chen stressed that the short-term success of the company in the sector – or lack thereof – would determine his fate. “The business of the devices must be cost-effective, not want to lead a business that drag the balance,” he said. “It is the time we get to the payoff… we have to come this year.” So it is expected an update of that decision in the next meeting with the investors of the company.
Meanwhile, BlackBerry has launched a website for the sale of such as cases, chargers, batteries and audio products to your existing phone, the DTEK50, and also for the Priv. The goal is to sell those accessories at a reduced price until the 27th of September. In July, BlackBerry said to some u.s. companies, such as Verizon and AT&T, that all the devices that are running BlackBerry 10 will be discontinued in the near future.
And a little before, stopped the production of its mobile phone model classic. (The decision disproportionately affected employees of the Senate of the united states, more than 28% of whom used a BlackBerry phone).
The Motley Fool also reported that the hardware under-performance is the culprit of this decline.BlackBerry Priv, which was launched in November of last year, contributed to sales of devices in the first quarter with just 500,000 units – a significant fall compared to the 2.1 million units that the company sold during the same period of 2014-.
analysts blame it for your price, of $ 700, while Chen acknowledged that it was a false step. “[Priv] is, unfortunately, a range too high and is not moving as fast as we would like,” he said. “Our phones do not have a great demand.”
despite all these setbacks, a close look that would go against the recent plans of BlackBerry. In July, BlackBerry has partnered with TCL Communications to produce the DTEK50, an accessible phone that was described as one of “the safest in the world”.
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