David Papp Blog

The New BlackBerry – Why Outsourcing The Hardware May Be Their Best Move

According to the latest announcements, the struggling BlackBerry is now outsourcing its hardware production.  You might think that’s counter-intuitive – because the hardware was great.  It’s what made them different (hello, easy-to-use QWERTY keyboards).

When the iOS and Android devices took over the market, Blackberry seemed to fade out of sight.  According to comScore, their share of smartphone subscribers in the mobile market dropped to only 0.9% last year.

What went wrong? BlackBerry’s nearly fatal flaw in the mobile market was in the software. The company never jumped on the app craze which helped iOS and Android shine.  So … why get rid of the hardware?

According to the latest announcements, BlackBerry plans to concentrate on the part of software they do best – security.

Strength in Security

Remember when the BlackBerry first came out?  If you lived near a military base, it seemed like every officer and his wife had one.  

BlackBerry’s security is unrivaled by its competitors and has kept it afloat over the years. This continues to be a major selling point for the phones. The latest models offer communication and collaboration with encrypted voice and messaging.  

BlackBerry also provides cybersecurity services and crisis communication for government and business organizations. Early this year, they acquired the UK-based Encryption, Ltd.

And along the way, they’ve been catching up in the app department with two Android devices – the Priv and the DTEK50 (DTEK60 leaks are out there right now).

More Than a Phone Company

A quick look at the company, however, shows that BlackBerry offers security for more than just phones. They have two major lines of products related to the “Internet of Things.”

BlackBerry Radar provides container tracking.  The service covers trailer, chassis, and container shipping.  And companies can follow every event of a shipment.  They can monitor details like storage temperature, location, and load and door status.  And they can prevent theft.

BlackBerry Software Update Management Services provide software updates for a variety of devices.  The company transmits firmware, applications, and content for everything from automotive vehicles and industrial equipment to consumer devices like washing machines and thermostats.  Delivery takes place over-the-air (OTA). The need for traditional maintenance and service visits is reduced.

The good news for consumers?

We’ll have new choices for stylish and secure new phones with the full range of apps …and we can look forward to greater security and efficiency in our increasingly automated lives.