Yuriy Ukazkin
Blackberry, a Canadian manufacturer of mobile devices, has recently started implementing the plan that was discussed for several years before it actually started. The tech company tried to avoid the scenario by all means but eventually gave up and had to get down to it in order to save its business.
In particular, BlackBerry signed an agreement with Foxconn (Taiwan) according to which the latter will act as the hardware manufacturer of BlackBerry smartphones while BlackBerry itself will develop software and provide various services.
Even though the idea of outsourcing some of its business is not new since the sales are declining rapidly and the hardware production business is too costly for the company itself, Blackberry eventually dared implement this plan B only after appointing new CEO Steve Chan.
Analysts say that this is the right decision since the company needs radical changes in order to stay afloat in the highly-competitive niche of mobile devices. At this point, Foxconn is set to produce BalckBerry phones at its facilities in Mexico and Indonesia.
Meanwhile, the news seems to have reassured traders and investors since they started a rapid recovery in the market of BlackBerry's stock instantly after the news release. The chart below, courtesy of Masterforex-V Academy, reflects the current state of affairs in the market of BBRY:
Yuriy Ukazkin
