Mobile Giants Make Moves With Hardware Strategy Changes

Contributor: Jason Koestenblatt
Posted: 10/04/2016
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Despite several years atop the business market as the most-used phone, BlackBerry announced it would cease all internal hardware development and outsource that operation to third parties.

The announcement came as a small portion of the company’s successful 2017 Q2 report, which cited an 89-percent year-over-year non-GAAP software revenue growth.

“Our new Mobility Solutions strategy is showing signs of momentum, including our first major device software licensing agreement with a telecom joint venture in Indonesia. Under this strategy, we are focusing on software development, including security and applications. The company plans to end all internal hardware development and will outsource that function to partners. This allows us to reduce capital requirements and enhance return on invested capital,” said BlackBerry CEO John Chen in the report.

The smartphone market became competitive in 2007 when the iPhone gave BlackBerry its first true competition. Tech giants like Samsung and Microsoft followed suit, creating their own line of smartphones that would draw consumers – especially those using the devices in the business landscape – away from BlackBerry.

Meanwhile, Microsoft is also changing its focus when it comes to mobile, pulling back from the consumer market to put resources behind its enterprise strategies.

In an interview with Le Point, Microsoft France president Vahe Torossian said the strategy for Windows Phone is to focus on enterprise customers and back out of the mass consumer market.

“The entrance ticket to the mass market smartphones is too high; we are betting on a technology leap in a few years with a paradigm shift. During this transition period, we won’t stay in the consumer smartphone market,” Torossian said.

What does this mean to the enterprise mobility market? How will the changes impact production for workers who use BlackBerry? How will Microsoft’s focus on enterprise mobility change its place in the market? Let us know in the comments section below.

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Jason Koestenblatt
Contributor: Jason Koestenblatt