Poor sales of Blackberry smartphones has forced the company to cancel the launch of two budget phones that were aimed at catering to the emerging markets of low-cost smartphones, according to a budget report released by the company.
Blackberry has cancelled the launch of two budget smartphones considering its poor sales.
The company refrained from revealing when the two phones were slated for release but did confirm the cancellation. It further reported that it had outsourced the production of its low-end handsets to China's Foxconn plant and has now called off the release of the two models codenamed Café and Kopi.
Nonetheless, Blackberry fans still have something to look forward to. According to a Wall Street Journal report, BlackBerry is still working towards two high-end smartphones, code-named Ontario and Windermere. There is no release date set for BlackBerry's secret flagship devices, and the earnings report does not mention any features or specifications.
CEO John Chen said that BlackBerry would try to eventually have Foxconn take over all of its hardware production as the company transitions to focus on software and services. The report mentions that the Waterloo, Ontario-based company's 'BlackBerry Messenger (BBM) app' for Android and iPhone now has more than 40 million active users. The app still has an uphill battle, as cross-platform messaging competitors like WhatsApp have more than 400 million active users.
"This partnership demonstrates BlackBerry's commitment to the device market for the long-term and our determination to remain the innovation leader in secure end-to-end mobile solutions," John Chen, Executive Chairman and Chief Executive Officer of BlackBerry, said in a press release. "Partnering with Foxconn allows BlackBerry to focus on what we do best - iconic design, world-class security, software development and enterprise mobility management - while simultaneously addressing fast-growing markets leveraging Foxconn's scale and efficiency that will allow us to compete more effectively."
WhatsApp growth in the competitive messaging business is significant. The free messaging service achieved a new milestone of 400 million active monthly users, with more than 100 million added in the last four months. BlackBerry's messaging platform must find a way to attract more users to compete with its contemporaries like WhatsApp.
