During the Q1 FY2016 earnings call, BlackBerry CEO John Chen addressed the decline in hardware profits. Due to the decline, Chen said he has taken resources from their hardware division to bolster focus on software and Internet of Things (IoT).

What will this mean for future BlackBerry smartphones? It’s certainly unclear at this time, especially given the abundance of news regarding BlackBerry deepening its use of Android.

ADVERTISEMENT

Moving monetary resources to software and IoT seems like a wise play. BlackBerry is consistently expanding its software profitability via BES and QNX. BlackBerry recently stole the Royal Bank of Scotland from their leading MDM competitor, MobileIron.

The IoT industry is expected to be a tremendously huge market, where BlackBerry is currently a leading player. BlackBerry has the potential to tap into this multi-billion-dollar industry.

Chen says the company’s current focus on hardware is solely for profitability. What this may mean for the future is less BlackBerry handset variations. BlackBerry will have to find their deeper niche. The BlackBerry Classic was expected to be an incredible seller due to it bringing back the toolbelt and TrackPad. Unfortunately, according to the Q1 FY2016 earnings report, the Classic sales haven’t helped much to bring the company to profitability.