BlackBerry could abandon its hardware business as early as this year.
If CEO John Chen can’t make the segment profitable by September, BlackBerry plans to ditch hardware. The Canadian company noted recently that it doubled software and licensing revenue during its fiscal fourth quarter but suffered further declines in smartphone sales.
Despite the launch of the Priv, a new device, BlackBerry sold barely half a million smartphones over three months.
“I still believe that we have a shot at it,” Chen said of a profitable hardware business during a conference call.
Software represents more than 22% of BlackBerry’s business right now and the company hopes to double that figure in the coming years. This will be aided by the growth of the Internet of Things market, in which BlackBerry already has a hand thanks to its QNX technology in 60 million cars.