Share

View Indicator

RIM Phone Production Collapses to 900,000 Units; Single-Quarter

2026-01-16

Core Overview: According to the latest DataTrack data, RIM (BlackBerry) global smartphone production recorded only 900,000 units (900K pcs) in the second quarter of 2016, a sharp decrease of 55% compared to 2 million units in the previous quarter, marking the lowest point in the history of this data series. Compared to the single-quarter peak of nearly 10 million units at the end of 2011, capacity has shrunk by over 90%, indicating that the hardware business has entered a substantial winding-down phase.

Key Details: Observing long-term trends, RIM production has shown a step-like decline since 2014. Although there was a brief rebound to 3 million units in 2015 due to the launch of an Android model (Priv), momentum was subsequently lost. This time, production falling directly below the million-unit mark aligns with market concerns regarding "massive losses in the hardware division"; relevant financial data also shows that revenue for the quarter decreased by 31.8% year-over-year, and net loss expanded to 372 million USD, further substantiating the necessity of scaling back manufacturing.

Deep Attribution: The primary reason for the sudden drop in production is BlackBerry's inability to compete with iOS and Android in terms of touchscreen experience and App ecosystem. According to CBC News and The Guardian reports, CEO John Chen finally confirmed the strategy to "end internal hardware development," shifting instead to a brand licensing model. This involves outsourcing manufacturing to partners such as TCL, while the company focuses on high-margin Software & Security services.

Outlook and Risks: In the short term (1-2 months), with the official announcement to stop manufacturing, market focus will shift to inventory clearance of older models and related asset write-down risks. In the medium term (3-6 months), investors should closely monitor whether software licensing revenue after the transformation can fill the revenue gap left by the zeroing out of hardware, and whether branded phones launched by new partners (such as TCL) can maintain the brand's final visibility in the business market.

Web Search References:

The content on this page is generated with the assistance of Artificial Intelligence (AI) and may contain inaccuracies, errors, or incomplete information. By accessing or using this AI service, you expressly agree that this content is provided solely for your personal, non-commercial reference, and that any use, reproduction, or distribution thereof must strictly comply with applicable laws and shall not infringe upon the intellectual property rights or other proprietary rights of any third party. You further understand and agree that DataTrack shall not be held liable for any disputes, damages, losses, or consequences resulting from business decisions made based on the reliance on or use of this content, with DataTrack reserving the right of final interpretation regarding these terms and the content provided herein.