BlackBerry to close its hardware division on September 28th?

BlackBerry to close its hardware division on September 28th?
Despite earlier reports that BlackBerry is prepping a follow-up device to the recently released DTEK50, an investment website says that there are clues that the once proud smartphone manufacturer is about to close its hardware division. The Canadian site belonging to the Motley Fool notes that hardware makes up 65% of the company's R&D expenditures, but its phones make up less than 1% of the global smartphone market.

BlackBerry CEO John Chan previously stated that he would be making a decision this month about whether to close the hardware division. With only a bit over a week until October rolls in, that announcement should be made soon. According to the Motley Fool, there is some foreshadowing on BlackBerry's part hinting at what is about to happen. The site points out that BlackBerry's website has a 40% off sale on all accessories that runs through September 27th. That happens to be the day before the company announces its second quarter earnings.

Last quarter, the company sold just 500,000 handsets, and the DTEK50 (basically a rebranded Alcatel Idol 4) is already being discounted by various retailers. To this highly respected investment site, it all adds up to the end of a division that once was the reason for BlackBerry to be in business. Now, hardware is zapping the life from the company.

Closing the hardware division would leave BlackBerry focused on its highly regarded software. And while this is pure speculation, it makes too much sense to close the hardware division so that BlackBerry doesn't continue to throw good money after bad.


source: MotleyFool

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112 Comments

1. meanestgenius

Posts: 21323; Member since: May 28, 2014

Pure speculation, guessing and hearsay, at best. Whether BlackBerry shuts down its hardware division or not on the 28th of September is something best left alone until we hear it from John Chen himself. Funny how these articles always pop up when it's almost time for BlackBerry to report their earnings every quarter. I've personally always said that BlackBerry would be better off without the hardware division, but, as I said, it's best to wait to hear this news from the proverbial horses mouth.

4. Rydsmith unregistered

...No you haven't. In fact I previously linked a screenshot of you claiming that Blackberry owned the enterprise mobile device world which you went all Trump on and doubled down on your incorrect statement. Links were provided that proved you incorrect in that statement then you changed it to Enterprise Hardware for security and not BYOD places that will get hacked. And THEN you doubled down yet again saying you meant software the entire time.

5. meanestgenius

Posts: 21323; Member since: May 28, 2014

Yes, I have, and I can link articles where I have said that BlackBerry would be better off by getting out of hardware and sticking with just the software. And I've always referred to BlackBerry's software as being what ruled the enterprise market, so much so, that others here have questioned why I bring up software and enterprise on a consumer and hardware driven tech site. It's your misinterpretation of my words and you being so stuck on hardware (like most here) that made you assumed otherwise, and I clarified myself since you obviously had a hard time understanding me. Now, I believe that I've also mentioned before that I do not wish to converse with racists such as yourself. Kindly remember that the next time you want to respond to a something that I post.

21. Bm888

Posts: 517; Member since: Jul 06, 2015

Big boys being fell.. Nokia, blackberry, who else? Sony , Motorola?

22. meanestgenius

Posts: 21323; Member since: May 28, 2014

NO ONE stays on top forever. Even Apple was almost out of business in the 90's. They wouldn't be here today if it weren't for Microsoft helping them out.

24. NarutoKage14

Posts: 1293; Member since: Aug 31, 2016

Very true. Everyone claims we owe the current smartphone industry and all its advanced to Apple when in fact it's thanks to Microsoft. Apple would no longer exist if Microsoft had not given them the cash to keep paying their employees.

25. NarutoKage14

Posts: 1293; Member since: Aug 31, 2016

And we owe the existence of mobile phones to Star Trek.

27. meanestgenius

Posts: 21323; Member since: May 28, 2014

Lmao!

26. meanestgenius

Posts: 21323; Member since: May 28, 2014

Exactly. But trolls like Mxy refuse to even acknowledge this.

57. Mxyzptlk unregistered

D-e-n-i-a-l I even spelled it out so you can comprehend it.

66. meanestgenius

Posts: 21323; Member since: May 28, 2014

I see it took you, what, 10 hours to learn how to spell that word? Or did you just Google it?

91. Mxyzptlk unregistered

It's called a vocabulary you twit. Not my fault if you're lacking in that department.

102. meanestgenius

Posts: 21323; Member since: May 28, 2014

Stop being so salty because I outed you with your hooked on phonics.

46. RH234

Posts: 52; Member since: Aug 21, 2013

True but Apple made use of Microsoft's money and grew the business to what it is today. BlackBerry got a White Knight in Prem Watsa but failed to capitalize on that investment and just basically sat on that money for 3 years. Most businesses are built from loans from banks but we rarely attribute a Company's success to them.

47. meanestgenius

Posts: 21323; Member since: May 28, 2014

I doubt that building on their software business and making strategic purchases can be construed as "failed to capitalize". BlackBerry just went in a different direction, one that the most people here just don't understand.

48. RH234

Posts: 52; Member since: Aug 21, 2013

They failed to capitalize on the handset business which was their main focus when they got the capital injection.

52. meanestgenius

Posts: 21323; Member since: May 28, 2014

No, it wasn't. When they got that capital, John Chen had already planned to move them away from handsets.

92. Mxyzptlk unregistered

You're arguing with a brick wall.

103. meanestgenius

Posts: 21323; Member since: May 28, 2014

She certainly enjoys the fact that I'm a "brick wall", lol.

9. Mxyzptlk unregistered

Lol, meanest getting called out and put in his place. +1 for the truth.

11. meanestgenius

Posts: 21323; Member since: May 28, 2014

Mxy wanting to get his trashed again for going against meanest. +1 for the stubbornness and bravery.

12. Mxyzptlk unregistered

Meanest acting like a paid blackberry shill.

13. meanestgenius

Posts: 21323; Member since: May 28, 2014

Mxy acting like a glorified troll and blind i$#33p.

14. Mxyzptlk unregistered

Not my fault if you're in complete denial.

18. meanestgenius

Posts: 21323; Member since: May 28, 2014

Pot, meet kettle.

58. Mxyzptlk unregistered

Aka, I have no comeback.

68. meanestgenius

Posts: 21323; Member since: May 28, 2014

AKA neither do you. Pot, meet kettle again.

93. Mxyzptlk unregistered

Aka, you're in denial of the truth.

104. meanestgenius

Posts: 21323; Member since: May 28, 2014

Pot, meet Kettle.

17. sissy246

Posts: 6950; Member since: Mar 04, 2015

True Will I see who wrote the article. The article head line is miss leading as usual. Quote..... "BlackBerry CEO John Chan previously stated that he would be making a decision this month about whether to close the hardware division" It is not set in stone like the article head line sounds

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