Embattled mobile phone firm BlackBerry has revealed it will stop designing smartphones in-house as it posted more losses and plunging sales.
The Canadian firm said it will outsource hardware development to partners and focus instead on software.
It comes after the group - once a market leader - has lost out to smartphone rivals Apple and Samsung in recent years.
"We are focusing on software development, including security and applications," BlackBerry boss John Chen said.
"The company plans to end all internal hardware development and will outsource that function to partners."
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BlackBerry also announced second quarter results revealing it tumbled into the red with net losses of $US 372 million ($A485 million) against profits of $US51 million a year earlier.
Its revenues slumped by 31.8% to $US334 million.
The group said excluding one-off items, it broke even in the three months to August 31, while it added that it more than doubled software revenue.
