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takyon writes:

BlackBerry is done with internal hardware development:

BlackBerry says it plans to end all internal hardware development — signalling a strategic shift for a company that built its reputation on innovative smartphone technology created at its base in Waterloo, Ont. [...] The company reported a net loss of $372 million US, or 71 cents a share, on revenue of $334 million.

BlackBerry will "outsource that function to partners":

The Canadian company said on Wednesday that it will shut down its own phone business after the failure of its latest bid to use Google's Android software to stimulate interest. Instead, it will rely on others to design and build the devices to save on capital. "The company plans to end all internal hardware development and will outsource that function to partners," CEO John Chen said in a statement.

The decision closes a significant chapter in one of the most storied franchises in phone history. BlackBerry was among the high flyers in the early days of the mobile phones. Legions of "CrackBerry" addicts in the white-collar work force tapped away at its trademark physical keys in the early 2000s.

[...] In 2013, CEO John Chen came into BlackBerry with a mission to transform the company, focusing more on software and services. At the same time, he had to keep a foot in the phone business, which still generated a significant chunk of the company's revenue. Even in the most recent quarter, it accounted for 30 percent of its revenue. But Chen has always been lukewarm about the phone business. He has said on multiple occasions that he would drop out of phones if that business couldn't generate a profit, which many took as a warning. He also never felt entirely comfortable as a pitchman for the devices. In July, he didn't bother to show up at the unveiling of its Android-powered DTEK 50 phone.

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