Blackberry Partners with Foxconn

[ThePointblank]

http://www.dailytech.com/BlackBerry+Partners+with+Foxconn+for+BB10+Devices/article33971.htm

 

 

Foxconn will manufacture BlackBerry products in both Indonesia and Mexico
 

BlackBerry announced today that it would partner with Foxconn and let the Taiwanese electronics assembler take care of hardware while BlackBerry focuses on software.

BlackBerry and Foxconn have signed on for a five-year partnership, where Foxconn will manufacture BlackBerry products in both Indonesia and Mexico.

"This partnership demonstrates BlackBerry's commitment to the device market for the long-term and our determination to remain the innovation leader in secure end-to-end mobile solutions," said John Chen, Executive Chair and CEO of BlackBerry. "Partnering with Foxconn allows BlackBerry to focus on what we do best - iconic design, world-class security, software development and enterprise mobility management - while simultaneously addressing fast-growing markets leveraging Foxconn's scale and efficiency that will allow us to compete more effectively."

Chen said the idea behind the partnership is to lower the company's financial risk and to produce better Blackberry 10 (BB10) devices.

BlackBerry will pay Foxconn for the cost of manufacturing directly once costs are set in stone and production ramps up. BlackBerry gets to take in revenue from device sales, and if that revenue surpasses a certain amount, Foxconn gets a slice too.

BlackBerry's designers in North America will focus on enterprise devices while Foxconn will be tasked with creating consumer devices. BlackBerry plans to make devices for both developing and mature markets.

Chen said the first BlackBerry smartphone to come from Foxconn will be released in March or April 2014, and it will be a 3G, BB10 device. It will initially launch in Indonesia, but make its way to six or seven other markets later.

Enlisting Foxconn isn't a bad idea, considering BlackBerry has had a few hard financial hits this year. In Q2, it reported a loss of $965 million. For Q3, it announced a loss of $4.4 billion, revenue at $1.2 billion (down from $1.6 billion in Q2).

Sales for Q3 weren't pretty, either. BlackBerry only sold 1.9 million handsets for the quarter, dramatically down from 3.7 million in the previous quarter.

In early November, the company ditched buyout plans with Fairfax Financial Holdings Limited for a $1 billion investment instead, which was given by Fairfax and other institutional investors.

 

 

It should do something about the frequently inventory writedowns Blackberry has right now, as Blackberry will now focus on the software, while Foxconn will develop the hardware for the consumer market. It will also help Blackberry's fixed costs, as it eliminates inventory costs for Blackberry. Blackberry will still however control the development and design of their enterprise lineup though.

 

As per the article, the first Foxconn developed Blackberry phone is a lower end phone for emerging markets due out end of Q1 in 2014. 

[Langdon]

I wish Foxconn would just die in a fire but cheap manufacturers like them are what all companies use these days.

[Maskot]

if they merge, will the company be FoxBerry or BlackCon?

[nicehat]

if they merge, will the company be FoxBerry or BlackCon?

 

They wont merge. Just like their other major partners Apple, Acer, Dell, Nintendo Toshiba and Sony wont be merging with them either. I think this is a great move. Clearly demarcate the line of low cost consumer products against higher end enterprise units is something that John Chen is doing right since taking the helm. The days of mocking BlackBerry are over. 

[TopWargamer]

I feel bad for all of the Foxconn slav- employees.

[dizmo]

I wish Foxconn would just die in a fire but cheap manufacturers like them are what all companies use these days.

I'm sure the 1.2 million+ people employed by them would disagree.

 

A lot of companies products would be a lot more expensive if they all had to buy their own tooling for mass production.

[delanyinspiron6400]

I hope this helps Blackberry out, I love my Blackberry Q10 and the Z10 before it, wouldn't want to switch!

[Fetzie]

Pretty much everybody is partnered with Foxconn in some capacity nowadays, aren't they?

[Damikiller37]

If not for Foxconn I wouldn't have a Kindle Paperwhite and for the money they are sold for it's almost like getting it half priced.

[IPCharger]

Go Mexico!

[miyabwah]

Companies take all the cheap things and cheap out when building things that people are actually going to use. In the long run it'll be cheap, but not as invincible as a Nokia.

[Mooshi]

That headline almost made me barf, Blackberry deserves to keep tanking.

[dizmo]

Companies take all the cheap things and cheap out when building things that people are actually going to use. In the long run it'll be cheap, but not as invincible as a Nokia.

 

Nokia uses Foxconn.

 

I agree though. They don't make things like they used to (never thought I'd say THAT boy do I feel old).

It seems like they're designed to last a few years and be tossed.

[h3ll0]

Fuck Foxconn. Enough said.

[Langdon]

I'm sure the 1.2 million+ people employed by them would disagree.

 

A lot of companies products would be a lot more expensive if they all had to buy their own tooling for mass production.

I don't disagree with your second point. Foxconn just isn't known to be very humane with their working conditions.

[dizmo]

I don't disagree with your second point. Foxconn just isn't known to be very humane with their working conditions.

 

True, and while I do agree that they need better working conditions, anyone who thinks this can happen overnight just isn't being logical. China is still quite young in terms of a global presence, and they will improve in that regard I'm sure. It just takes time. I'm sure Taiwan wasn't the best for workers standards when everyone started manufacturing there, either. Even if the higher ups pushed for it, it takes time, and changing the way things have been done for decades. Managers farther on down the line might be set in the way they've done things.

 

No idea why so many people have this "fuck Foxconn" attitude. Good luck buying anything electronic related.

Yes, they had that suicide press coverage, however look at Taiwans suicide rate and they are WELL below the 15 per 100,000 average.