BlackBerry to cut down on phone production, still planning on a device to appease iPhone users

BlackBerry to cut down on phone production, still planning on a device to appease iPhone users
Mr. John Chen, CEO of BlackBerry, sat down with FOX Business reporters to talk about the past and future of the phone-building company. BlackBerry was pretty prominent in the past, but allowed itself to slip and fall from the top soon after Apple rocked the industry with the release of the iPhone. Ever since, BlackBerry handsets have remained favorite handsets for governments and some professionals, but have fallen off the mainstream public's radar.

In the interview, Mr. Chen admits that the company has decided to shift focus from making handsets to further developing the security of its services – BlackBerry still holds the niche for secure devices and, perhaps, this is the one it intends to thrive in, at least for now. John Chen said that the company has been spending about 100 million per year (presumably since he's been CEO) in security services, and has purchased companies that specialize in secure voice communications, information compartmentalization (work / personal), and most recently – AdHoc – a company that specializes in secure messanging software (and has contracts with the US Department of Defense and Homeland Security).

On the smartphone side of things, Mr. Chen said that the company intends to cut down on the amount of handsets it churns out annually – from the 4(ish) models per year down to 1 or 2. This will result in job cuts, though, Mr. Chen stressed that it's not a reduction of job spots within the company, but a shifting of resources. Additionally, the CEO confirmed that the company is planning to offer *something* for the users that carry an iPhone for personal and BlackBerry for professional use – probably some sort of a mixed device, but Chen preferred not to disclose anything as of yet.





source: FOX Business via Ubergizmo

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30 Comments

1. rency0722

Posts: 158; Member since: Jun 12, 2013

Defense. Not defence

8. Crispin_Gatieza

Posts: 3153; Member since: Jan 23, 2014

Messaging not messanging.

13. threed61

Posts: 259; Member since: May 27, 2011

Both are proper. With an s is American, with a c is British. There is a big world outside the USA.

16. corporateJP

Posts: 2458; Member since: Nov 28, 2009

Dude is ignorant, he thinks Cuba is the center of the universe and that Jesus Christ is from there.

2. JOHNNY8573

Posts: 48; Member since: Nov 11, 2013

maybe the spell check was turned off

3. noler

Posts: 326; Member since: Aug 19, 2013

So one Android device and one BB10 per year?

11. Mxyzptlk unregistered

Cutting down the weight so they don't sink faster. They're going to to have to allocate something in order to stay afloat.

25. noler

Posts: 326; Member since: Aug 19, 2013

I'm against BB going Android(this will kill BB10) but if it will make them more successful then I am in favor.

27. Mxyzptlk unregistered

Not like it was that alive to begin with

19. SitiNurbaya0

Posts: 153; Member since: May 22, 2015

One android one device, and no bb10 make more sense they already send bb10 team go home and also design phone team go home only 5 person work now.

22. meanestgenius

Posts: 22287; Member since: May 28, 2014

It's such a shame that you really don't know a damn thing about what's going on here.

24. meanestgenius

Posts: 22287; Member since: May 28, 2014

"Mr. Chen stressed that it's NOT A REDUCTION IN JOB SPOTS within the company, BUT A SHIFTING OF RESOURCES." That excerpt was taken from this very article. The "caps" were added by me to emphasize the point I'm making. Please, at least TRY and comprehend what is written in the article.

4. xnga123

Posts: 51; Member since: Dec 05, 2014

for appeasing iphone users,he is planning to release a phone with an apple logo?

6. meanestgenius

Posts: 22287; Member since: May 28, 2014

No, he is referring to releasing a device to appease those consumers that carry a BlackBerry for work and another device for personal, be it iPhone, Android or Windows.

10. Mxyzptlk unregistered

Your completely dense if you think that's why he is planning to release a phone to cater to the iphone crowd.

14. BobbyDigital

Posts: 2125; Member since: May 29, 2014

So are you for using *YOUR* instead of *YOU'RE*.

15. Mxyzptlk unregistered

Don't be a grammar cop.

18. BobbyDigital

Posts: 2125; Member since: May 29, 2014

Don't be a troll.

26. Mxyzptlk unregistered

Don't be a cheerleader.

28. BobbyDigital

Posts: 2125; Member since: May 29, 2014

Don't be a d!ck.

20. SitiNurbaya0

Posts: 153; Member since: May 22, 2015

the bb logo will be eaten a bit

5. meanestgenius

Posts: 22287; Member since: May 28, 2014

Smart move by BlackBerry. Focus on where they are strongest, and limit focus on where they are not so strong. Shore up enough cash, and then make a hard push where they are not so strong. This has been John Chen's focus all along.

9. Crispin_Gatieza

Posts: 3153; Member since: Jan 23, 2014

Explain that to the morons who think BB needs to go all-Android to survive.

12. meanestgenius

Posts: 22287; Member since: May 28, 2014

They'll never understand.

7. meanestgenius

Posts: 22287; Member since: May 28, 2014

The AtHoc acquisition, which is downplayed in this article, is a really important one for BlackBerry that makes sense. "The company’s extensive list of clients includes US military organisations, the Pentagon, Department of Homeland Security, US Treasury, American Red Cross, and firms such as Eastman and Microsoft Corporation." That was taken from here: http://m.theaustralian.com.au/business/technology/blackberry-acquired-athoc-push-business-in-australia/story-e6frgakx-1227455228446 So, not only does it put BlackBerry in deeper with organizations that it is already involved with, but it also puts BlackBerry in with companies like Microsoft as a source of revenue. Great win for BlackBerry here.

17. Dr.Phil

Posts: 2452; Member since: Feb 14, 2011

If you really think about it, this is an Apple strategy. Apple churns out 1-2 devices per year and has had great success with it. In fact, almost every phone manufacturer used to produce only a few devices many years ago. It wasn't until Samsung decided to introduce a portfolio of devices that manufacturers felt the need to produce a wider range of products. Samsung has found some success (note the word some, as they have been facing some poor device sales in some areas by doing this "all-out" approach) in doing this because they are trying to compete in every niche. Blackberry just needs to focus on their one to two devices and making them exceptional products.

21. SitiNurbaya0

Posts: 153; Member since: May 22, 2015

i think more reason because noone want bb anymore. so before being shame, they say they focus. smart thinking by bb.

23. meanestgenius

Posts: 22287; Member since: May 28, 2014

No one wants BlackBerry anymore? Someone should have told that to the million+ individuals that purchased BlackBerry handsets last quarter. By your logic, no one wants HTC or Sony anymore, considering how bad they're doing in mobile.

29. BobbyDigital

Posts: 2125; Member since: May 29, 2014

I think no one wants your horrible grammar anymore. Its disgusting. Pick up a book why don't you?

30. jroc74

Posts: 6023; Member since: Dec 30, 2010

Interesting....some of us actually called this before this news broke. All this leads me to think the rumors about the BB phones running Android might be true.

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