BlackBerry, Canada's leading technology company, has said it will no longer manufacture smartphones at its company.
BlackBerry was once the leader in the manufacture and market of the phone, and now it is lagging behind Apple and Samsung in the race for modern smartphones.
In May, John Chen, the company's chief executive, said it was not until September that the hardware business would be profitable.
Now BlackBerry says it will hand over the phone to its subsidiaries.
However, the company has not yet announced the date for the launch of the new BlackBerry phones.
Mr Chen told BNN: 'I always wished that this traditional phone would remain intact. All we had to do was figure out how we could make money while being efficient. I think we have discovered that model
The company says it sold 4 million phones in the second quarter, which is lower than the previous quarter.
CBS Insight Consultancy's Benwood said: "BlackBerry will not always be making phones for its small consumer group who have become addicted to their phones.
"BlackBerry has done a reasonable job by giving the responsibility of making a phone to a third party, but the party that made the phone will face the same problems."
Mr Chen had clearly stated that if making a phone was not a profitable deal, he would shut it down. For the first time, he mentioned this in September last year
He told Bloomberg: 'The first time I made a statement was the month of September last year. So September of this year is that month. '
BlackBerry launched its first smartphone in October last year, based on Google's Android rather than their own software
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