Deals
BlackBerry’s Foxconn Deal Spurs Evolution Into Services Company
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BlackBerry Ltd.’s five-year deal to outsource smartphone production to Foxconn Group is jump-starting its transformation into a services provider, pleasing investors who were looking for a smaller, nimbler company.
BlackBerry announced plans yesterday for Foxconn to make its phones at plants in Indonesia and Mexico, sending the shares up 16 percent, the biggest one-day gain in more than four years. The move will help the struggling company cut production spending and avoid the kind of inventory gluts that contributed to a $4.6 billion writedown last quarter.