BlackBerry Stops Development of Smartphones, Set to Outsource Hardware Development

BlackBerry on Wednesday said it would cease internal development of its hardware and will transfer that function to its partners. While the BlackBerry-branded devices will remain on the market, BlackBerry itself will focus completely on software and will not invest in development of devices. The move edges the company closer to exiting the hardware business after years of considering such a move.

“The company plans to end all internal hardware development and will outsource that function to partners,” said John Chen, CEO and chairman of BlackBerry. “This allows us to reduce capital requirements and enhance return on invested capital,” continued Chen.

Less than three years ago BlackBerry inked a strategic partnership with Foxconn, under which the two companies jointly developed certain BlackBerry-branded smartphones. Foxconn then built the hardware and managed the entire inventory associated with these devices. Now, the company intends to cease all of its hardware-related R&D activities and outsource this function to others.BlackBerry will now focus on development of extra-secured versions of Google’s Android operating system (recently the company introduced its own version of Android 6.0 that is used on the DTEK50 smartphone) as well as applications with enhanced security available through its BlackBerry Hub+ service.

In addition to Foxconn, BlackBerry has worked with other hardware makers. BlackBerry’s DTEK50 smartphone released earlier this year resembles Alcatel’s Idol 4 handset developed by Chinese TCL. Therefore, right now BlackBerry has at least two partners, which can build smartphones carrying the well-known brand all by themselves. In fact, this deal with BlackBerry puts TCL into an interesting position because it now can make handsets both under BlackBerry and Palm brands (in addition to Alcatel trademark, which TCL uses for its smartphones).

Today, BlackBerry also announced its first licensing agreement with joint venture PT Merah Putih, an Indonesia-based company. Under the terms of the agreement, the latter manages production and distribution of BlackBerry-branded devices running the BlackBerry’s Android software. While it is not completely clear to which degree PT Merah Putih develops its hardware in-house (typically, such companies outsource design of their products to others), it is more than likely that the actual devices are made by an ODM, such as Foxconn or TCL.

BlackBerry has been considering an exit from the hardware business for several years now, ever since the company appointed John Chen as CEO. The head of the company has said on multiple occasions that software and security technologies are the main strength for BlackBerry and warned that the firm could drop hardware completely if this business is not profitable. As it appears, BlackBerry will cease development of its smartphones, but will allow others to do it. Therefore, BlackBerry-branded devices will remain on the market, but the company will not spend big money on their development.

Xiaomi Mi 5s and Mi 5s Plus Announced

Xiaomi announced two new flagship smartphones today. The Mi 5s and Mi 5s Plus are updates to the Mi 5 / Mi 5 Pro and Mi 5 Plus phones that were announced at MWC 2016 in February, and pack some new hardware inside a new brushed-aluminum chassis.

Both the Mi 5s and Mi 5s Plus use Qualcomm’s Snapdragon 821 SoC, which itself is an updated version of the popular Snapdragon 820 that’s inside the Mi 5 phones and many of the other flagship phones we’ve seen this year. With Snapdragon 821, max frequencies increase to 2.34GHz for the two Kryo CPU cores in the performance cluster and 2.19GHz for the two Kryo cores in the power cluster. The Mi 5s uses the lower-binned version of the 821 that limits peak CPU frequencies to 2.15GHz and 2.00GHz, respectively. Complementing the quad-core CPU is Qualcomm’s Adreno 530 GPU that also sees a small 5% increase in peak frequency to 653MHz in the Mi 5s Plus. While it’s unclear if the 821 includes any changes to its micro-architecture, Qualcomm has likely done some layout optimization as it’s quoting a 5% increase in power efficiency. The Mi 5s and Mi 5s Plus still pair the SoC with LPDDR4 RAM and UFS 2.0 NAND like their predecessors.

The Mi 5s still comes with a 5.15-inch 1080p IPS LCD. This is an extended color gamut panel that will display exceptionally vivid, but inaccurate, colors. Xiaomi claims the display will reach a peak brightness of 600 nits, which it achieves by increasing the number of LEDs in the backlight assembly from the typical 12 to 14 in most edge-lit IPS displays to 16, a feature also shared with the Mi 5. This improves power efficiency by 17%, according to Xiaomi, presumably from using more LEDs at lower individual output levels. The Mi 5s Plus has a larger 5.7-inch 1080p IPS display with a pixel density of 386ppi, which is still decent for an LCD, and a claimed brightness of 550 nits. It’s also an extended color gamut panel, but Xiaomi includes an sRGB display mode and the ability to adjust the white point for both the Mi 5s and Mi 5s Plus.

Xiaomi Mi 5s

While the front camera still uses a 4MP sensor with large 2.0μm pixels, both new phones receive new rear cameras. The Mi 5s looks to improve low-light performance by using a larger format Sony IMX378 Exmor RS sensor that features 1.55µm pixels; however, image resolution drops to 12MP, the same as Samsung’s Galaxy S7 and Apple’s iPhone 7. The Mi 5s Plus has the more interesting camera setup, employing dual 13MP sensors. Similar to Huawei’s P9 and Honor 8, the Mi 5s Plus uses one sensor for capturing color images and the other sensor for capturing black and white images. The black and white camera lacks an RGB Bayer filter, allowing it to capture more light than a color camera. By combining the output of both sensors, the Mi 5s Plus can theoretically capture brighter images with higher contrast and less noise. The P9 and Honor 8 also use the second camera for measuring depth, aiding camera focusing and allowing the user to adjust bokeh effects after the image is captured, but it’s not clear if the Mi 5s Plus also has these capabilities.

Xiaomi Mi 5s Plus

The other big change is a completely new chassis made entirely from brushed aluminum. The back edges are still curved, but there’s no longer any glass or ceramic on the back like the Mi 5 and Mi 5 Pro, respectively. The change to aluminum means the Mi 5s now includes plastic antenna lines on the top and bottom of the back panel. The Mi 5s Plus goes a different route by using plastic inserts at the top and bottom that try to blend in by mimicking the color and texture of the surrounding aluminum.

The Mi 5s Plus includes a circular, capacitive fingerprint sensor on the back that’s slightly recessed, making it easier to locate. The Mi 5s goes the less conventional route with an ultrasonic fingerprint sensor that sits below the edge-to-edge cover glass on the front. Both phones use capacitive buttons rather than onscreen navigation controls and 2.5D cover glass that blends into a chamfered edge on the aluminum frame.

Both phones come in four different colors—silver, gray, gold, and pink—and will be available for sale in China starting September 29.

Apple Adjusts iOS Device Storage Tiers and Prices

Today Apple made a number of announcements, including the year’s major update to the iPhone in the form of the iPhone 7, and the second generation Apple Watch, known as the Apple Watch Series 2. One of the smaller announcements of the day was a shake-up of the prices and storage tiers on iOS devices. To a large extent this addresses one of the major criticisms of Apple’s devices, which is that they’ve kept the base model at 16GB of internal storage for much longer than competing devices. I’ve compiled the changes that Apple has made to storage capacities and pricing across the iPhone and iPads lines in the charts below:

There are two parts to the changes made today. The first is that Apple has eliminated the 16GB storage tier on every device except for the iPhone SE. It would have been really great to see 16GB removed from the whole lineup, but I suspect that the iPhone SE’s margins are already lower than Apple would like. However, to keep the upgrade pricing in line with the other devices, the 64GB iPhone SE now only has a $50 premium over the 16GB model. On every other device, the 16GB storage tier has become 32GB, and 64GB has become 128GB, with prices being kept at the same point. 

The second change pertains to the iPad Pro devices, where the storage already started at 32GB and had upgrade tiers of 128GB and 256GB which each required an additional $150 on top of the starting price. With these Apple has maintained the same base price and storage tiers, but the upgrade price has dropped to $100 to bring it in line with the rest of Apple’s iOS devices.

While none of these changes are anything groundbreaking, it does address a longstanding problem with the iPhone and iPad. Even with cloud storage for music and other media, with new features like Live Photos and 4K video recording, the storage pressure on iOS devices has become much greater while storage capacities remained constant. Dropping prices on iPad storage upgrades also makes the larger capacity models more accessible, and bumping up capacities on the iPad Air 2 and iPad Mini 4 make them more useful as media devices.