…as Apple and Samsung dominate the industry
President Obama was one of the world’s most committed BlackBerry fans and was the first leader of the free world to use the gadget.
John Jackson, analyst at IDC, said BlackBerry’s decision to stop making devices was “entirely sensible and probably overdue”. He added: “Software revenue and the margin profile associated with that is where the focus should have been, and now can be.”
CMC Markets said the death of the BlackBerry handset marked the end of an era for a company once considered one of the world’s major smartphone vendors. CMC said that at its peak in September 2013, there were 85 million BlackBerry subscribers worldwide, but by March 2016 the number had fallen to 23 million as it lost out to the Android and iOS platforms.
Colin Cieszynski, chief market analyst at CMC, said: “Today marks a big transition for BlackBerry and the end of an era for the company. The company plans to shift its focus fully to communications and security software development, reducing capital requirements and increasing margins.”
BlackBerry shares rose in pre-market trading after it announced better-than-expected earnings for the second quarter and revised up earnings expectations for the full year to a range of zero to five cents a share, compared with current market expectations of a 15-cent loss.