BlackBerry Ltd (NASDAQ:BBRY) (TSE:BB) has made it clear that it has no plans to get into wearable technology. At Mobile World Congress in Barcelona, when CEO John Chen was asked if the company has any plans to make a smartwatch in the future, Chen confessed that the Canadian company has no plans to get into the wearable technology game, at least not yet.
BlackBerry focusing on what it knows
That doesn’t mean BlackBerry Ltd (NASDAQ:BBRY) (TSE:BB) won’t consider wearable technology down the road. Chen simply said that this market segment is not his focus right now. It may be in the future. The wearable device market is expected to soar to $18 billion by 2018. BlackBerry is working hard to produce new devices that appeal to consumers. John Chen is taking the smartphone maker through a restructuring phase, and aims to make it profitable by 2016. The Waterloo-based company unveiled new smartphones Z3 and Q20 at the Mobile World Congress. The Q20 has the traditional QWERTY keypad and 3.5-inch screen.
BlackBerry Ltd (NASDAQ:BBRY) (TSE:BB) will launch its low-cost Z3 smartphone in Indonesia, and in many other emerging markets subsequently. The company has teamed up with Taiwan’s Foxconn Technology Co., Ltd. (TPE:2354) to design and manufacture smartphones as it tries to lower the inventory burden. BlackBerry is also improving its BBM messaging app by adding free voice calls.
Will BlackBerry miss the boat?
Wearable technology is seen as the next big thing after the smartphone revolution. Almost every big technology company has either launched or is planning to launch wearable devices. Samsung Electronics Co., Ltd. (LON:BC94) (KRX:005930) unveiled the Galaxy Gear 2 and Gear Fit smartwatches at the Mobile World Congress. Sony Corporation (NYSE:SNE) (TYO:6758) has already been offering an Android-based smartwatch. Apple Inc. (NASDAQ:AAPL) is also rumored to launch the highly-anticipated iWatch this year. HTC has confirmed that it’s working on an intelligent wristwatch. Even chipmaker Intel Corporation (NASDAQ:INTC) is getting into wearable device market. So, it was an obvious question whether BlackBerry Ltd (NASDAQ:BBRY) (TSE:BB) too has any plans.
BlackBerry Ltd (NASDAQ:BBRY) (TSE:BB) shares jumped 0.87% to $10.42 at 11:02 AM EST.