BlackBerry’s no-phone business model isn’t working out as planned

Enlarge / Hardly anyone is buying these. (credit: Crackberry)

BlackBerry Ltd, the company that once led the world's "smartphone" market and ruled the corporate mobile e-mail world, posted its financials today for the most recent three months, and they were not pretty. Software and professional services sales were down by 4.7 percent, totaling $101 million for the quarter, and as a result the company missed analyst expectations for revenue by a wide mark.

The news comes as a blow to investors, who had pumped up the price of BlackBerry's stock by about 60 percent over the past three months-largely because people were so bullish on BlackBerry's software sales exploding. Today, the company's share price fell by over 12 percent before close. In fact, the company only turned a profit because of a $940 million payment from Qualcomm to settle arbitration over royalty payments.

In 2016, BlackBerry completely outsourced manufacturing of its phones. Since then, revenues from phone sales have collapsed-totaling $37 million for the quarter ending May 31, compared to $152 million last year.

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