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Former smartphone giant Blackberry has said it will no for a longer period manufacture its very own devices. Instead it intends to outsource hardware producing to development partners, though the main concentrate of its business is firmly on software program products and services at this point.

Quitting production will allow for the enterprise to reduce cash needs and greatly enhance return on invested cash, claimed CEO John Chen today (via StreetInsider), reporting its Q2 fiscal 2017 outcomes.

Balckberry had presently introduced one particular rebranded 3rd occasion smartphone handset, the DTEK50, with hardware manufactured by Alcatel — and Google’s Android OS being the software program main. So switching totally to OEM partners is an evident upcoming action.

Chen described Blackberry as reaching an “inflection point with our strategy”, and said its “pivot to software program is having hold”. He also talked up the company’s financial basis — many thanks to advancement in its software program business, stating it is “on track” for thirty for every cent revenue advancement in software program and products and services for the total fiscal yr.

“In Q2, we extra than doubled our software program revenue yr about yr and delivered the greatest gross margin in the company’s history. We also concluded initial shipments of BlackBerry Radar, an close-to close asset tracking process, and signed a strategic licensing settlement to drive world-wide advancement in our BBM purchaser business,” claimed Chen.

“Our new Mobility Options technique is exhibiting indicators of momentum, including our very first key unit software program licensing settlement with a telecom joint enterprise in Indonesia. Under this technique, we are focusing on software program development, including security and apps.”

Blackberry’s smartphone glory yrs are now pretty much a decade behind it, just after the enterprise was infamously wrongfooted by the change to Android and iOS touchscreen, application-centric smartphone platforms. Its very own upcoming-gen platform exertion, with BB10, arrived far too late.

Past year the enterprise ultimately embraced the enemy, launching its very first Android-powered handset, the Priv, albeit plus the conventional Blackberry keyboard and with some included security distinctive sauce of its very own.

It then went on to release a second Android-primarily based unit this summer months, the aforementioned DTEK50, while also nonetheless maintaining its very own BB10 platform — albeit not with a great deal fireplace in its tummy there.

Components income of all these phones have obviously been underwhelming, and the days of any Blackberry-branded devices for buyers are undoubtedly pretty much about.

Really security conscious business buyers, these kinds of as federal government departments and segments of the lawful sector, could persist for a while in wanting precise Blackberry hardware. But that is a marginal business — alongside the lines of expert crypto phones. And offered Blackberry will no for a longer period be controlling the hardware producing system by itself, it could even shed out to extra expert security hardware players who are going that additional mile.