Contract with Blackberry manufacturing and production contractor TCL expired
Steps toward effectively withdrawing from smartphone business
Customer service support until the end of August 2022
[Asia Economy Reporter Han Jinju] BlackBerry smartphones are disappearing into history. This is because the contract with TCL, which has been manufacturing BlackBerry-branded smartphones on consignment, will end in August.
On the 2nd (local time), BlackBerry Mobile announced on Twitter that it will stop selling Android smartphones from August 31. For customers who have purchased existing BlackBerry smartphones, technical support will be provided until August 31, 2022.
In 2016, BlackBerry decided to stop manufacturing its own smartphones and signed a contract granting TCL in China the rights to develop, produce, and market Android OS-based BlackBerry smartphones. BlackBerry focused on smartphone apps and security software services, while TCL paid royalties in exchange for releasing smartphones under the BlackBerry brand.
TCL stated, "We regret that from August 31, we will no longer be able to sell mobile devices under the BlackBerry brand, but we will continue to provide service and warranty support to mobile device purchasers until August 31, 2022. It has been a great blessing for TCL to work with BlackBerry Mobile, and we want to express our gratitude to customers and partners for allowing us to meet many fans from various regions."
BlackBerry has been producing mobile phones since 1999 and grew into a major smartphone manufacturer in the early 2000s with popular models such as the "Obama phone." However, its status declined after the 2010s due to competition from Android and iPhone camps. BlackBerry faced continuous losses, stopped its own production, and abandoned its own OS to take on new challenges, but even this was not easy. TCL released models such as KeyOne, Motion, Key2, and Key2 LE equipped with Android instead of BlackBerry OS. After the Key2 LE in August 2018, no new smartphones were released.
BlackBerry and TCL sought changes by adopting touchscreens instead of separately providing BlackBerry's unique physical keyboards while embracing Android. However, BlackBerry failed to gain the choice of many smartphone consumers. This was due to being sold at relatively high prices with mid-range specifications rather than high-end flagship models, and it was difficult to compete with Chinese manufacturers in the mid-to-low price segment.
The end of this contract is likely to lead to BlackBerry's withdrawal from the smartphone business. Although BlackBerry might sign a contract with another company to produce smartphones under its own brand, it is not easy to enter the business due to the poor sales performance of BlackBerry smartphones so far. In the community, an anonymous TCL employee revealed that while selling smartphones equipped with BlackBerry keyboards, they wanted to avoid using Android software or the brand.
BBC explained, "There were stories within TCL that collaboration with BlackBerry had failed and it became a reality. Although the contracts on both sides have expired, the possibility that another company will sign a contract to use the BlackBerry brand and provide more opportunities is also low."
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