Rumors are swirling about BlackBerry (TSX:BB)(NASDAQ:BBRY) and its future in the device business.
The rumors go something like this. John Chen, the company’s CEO, has previously listed September as a deadline for hardware, repeatedly telling investors that if the division wasn’t profitable by then, he’d pull the plug to focus on the company’s rapidly growing software division.
We’re now approaching the end of the month, and BlackBerry will address the street on Wednesday when it releases its quarterly earnings. If the company is going to get out of the hardware business, that would be the perfect time to announce it.
There’s other evidence that points to the company leaving the device business, too, including discounts on its newest phone, the Android-powered DTEK50, and of various accessories. Sales of the newest device have been lackluster at best, so perhaps that’s just retailers liquidating poorly performing inventory.
But there’s evidence the company is still holding onto hope. Just last week, specs for a new high-powered phone were temporarily leaked onto BlackBerry’s website before the company realized the mistake and deleted the evidence. Does BlackBerry actually plan to produce a new phone, or was this latest leak something different?
At this point, we don’t know, but one thing is certain: If BlackBerry is convinced to give up on smartphones, it’ll truly be the end of an era for the company. Many analysts and investors just don’t feel the company is ready to give up on the device that brought it so much success.
