BlackBerry shifts focus to profitable software as it stops making smartphones
BLACKBERRY will stop making smartphones to give its full attention to its more profitable and growing software business.Investors applauded the move, sending shares higher in early trading.The Canadian group said on Wednesday it had done a licensing deal with an Indonesian company to make and distribute BlackBerry-branded devices running on the company’s secure software. This formalises a move long in the making since CEO John Chen took over nearly three years ago and outsourced some manufacturing to Foxconn Technology Group.BlackBerry, based in Waterloo, Ontario, gained 2.5% in early trade in New York.Getting the money-losing smartphone business off of BlackBerry’s books will make it easier for it to sustain profitability. It will still design smartphone applications and an extra-secure version of Alphabet’s Android operating system."We are reaching an inflection point with our strategy," Chen said as he announced quarterly earnings. "Our financial foundation is strong, and our piv...
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