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BlackBerry to outsource future phone development

Last Updated Sep 28, 2016 at 9:46 am EDT

THE CANADIAN PRESS/Geoff Robins

BlackBerry says it plans to end all internal hardware development, signalling a strategic shift for a company that built its reputation on innovative smartphone technology created at its base in Waterloo.

The hardware development work will be outsourced to BlackBerry’s partners.

The move was announced by BlackBerry chairman and CEO John Chen as the company issued its latest financial report this morning.

He says that ending internal hardware development will reduce BlackBerry’s capital requirements and enhance return on invested capital.

BlackBerry says it had a US$372 million net loss in the three months ended Aug. 31, equivalent to 71 cents per share, but broke even after excluding certain items.

Revenue, which is reported in U.S. dollars, was $334 million or $352 million after adjustments that was below analyst estimates of $391.75 million.