CLASSIC ENDING
BlackBerry to stop making flagship smartphone, but no plan to exit hardware market,
WATERLOO— BlackBerry says it will stop making its Classic smartphone, less than two years after launching it with much fanfare.
“The Classic has long surpassed the average lifespan for a smartphone in today’s market,” Ralph Pini, the company’s chief operating officer and general manager for devices, said in a company blog post.
The Classic was an updated version of the original that made the company a smartphone leader before Apple entered the scene. Chief executive John Chen introduced the Classic after joining the company in 2013, bringing back the raised-button keyboard that BlackBerry enthusiasts loved, and which his predecessor, Thorsten Heins, let fall by the wayside with his push toward full touchscreen devices.
But Pini said in his post, “We are ready for change so we can give our customers something better.”
The Classic hit the market in December 2014, offering customers a 3.5-inch screen — 60 per cent larger than the previous BlackBerry Bold 9900 — longer battery life and a standard keyboard and touchscreen.
BlackBerry has faced calls to stop making cellphones in favour of focusing on its burgeoning software business, Chen recently reaffirmed his commitment to stay in the hardware market.
In its most recent quarter of its 2017 financial year, the company sold roughly 500,000 smartphones, about 100,000 smartphones fewer than the previous quarter.
However, Chen has said he believes a new venture to license BlackBerry’s mobile software to other companies can help turn its mobile business segment profitable this fiscal year, which ends in February.
BlackBerry is expected to release two new mid-range, Android-powered smartphones before the end of February. More information on the devices is expected this month.
The company will continue to support its BlackBerry 10 operating system with software updates, with a new version scheduled for release in August, Pini said.
BlackBerry has long fallen out of fashion for most smartphone users, forcing a management shakeup, rounds of layoffs and a turnaround strategy focused on secure software.
BlackBerry reported a loss of $671 million and a revenue drop of more than 30 per cent during the three months ended May 31.
It sold 500,000 phones in that period. In contrast, Apple sold 51 million iPhones in its latest quarter.
Still, the BlackBerry has been a staple in Congress due to its long battery life, prominence of email and easy-to-use keyboard.
It also has a reputation for being one of the most secure products available, as it has been fully encrypted for at least a decade. In an interview with USA Today last year, John Chen said the company relies on the heads of state and government in developed countries such as the U.S. to stay loyal to the phone because of its top-of-the-line security features.