BlackBerry keeps its hand in hardware with new phone
TORONTO BlackBerry Ltd. has released a new mid-range, touchscreen Android smartphone with a heavy focus on security in its latest attempt to return its waning hardware business to profitability.
Billed as the “world’s most secure Android smartphone,” the DTEK50 is a modified Android design with BlackBerry security features baked in. It is available for pre-order in Canada for $429 and in the U.S. and Western Europe for US$299 — less than half the price of its predecessor the Priv, which sold poorly due to its high price tag.
The device enters the market as the clock ticks down on CEO John Chen’s promise to stop losing money in the handset business by September. Chen has refused to give up on handsets, which lost US$21 million in the most recent quarter, even though their rapid decline in popularity has overshadowed BlackBerry’s recent success selling mobile security software to high-profile clients including the U.S. Department of Defense.
But it appears the Waterloo, Ont.-based company is betting the DTEK50 will piggyback on its position as a security leader to score a hit with consumers that left BlackBerry for iPhone and Android devices. Executives played up fears of security breaches in a Tuesday webcast unveiling the device, with chief security officer David Kleidermacher stating that data breaches on devices are growing “uncontrollably.”
“With an increase in cybercrime on smartphones, people need to recognize that the private details of their lives — where they live, their bank info, pictures of their kids — are at risk on their personal device,” Kleidermacher said in a statement. “You wouldn’t leave the doors of your house unlocked at night. Having a smartphone that doesn’t take your privacy seriously is the equivalent.”
The new phone uses the DTEK software (also on the Priv) to monitor security constantly and alert users when they’re at risk. It also features the BlackBerry hub, a 5.2-inch HD display, an eight megapixel front camera and a 13 megapixel rear camera, three gigabytes RAM and runs on Android 6.0 Marshmallow.
And it won’t be BlackBerry’s last attempt to grab back some of the smartphone market it used to dominate. Senior vice-president Alex Thurber confirmed during the webcast that another handset with the physical keyboard is coming soon. Meantime, he expects a sales boost from the DTEK50 due to its price.
“It has a much broader market than we have with the Priv,” Thurber said.
It’s a strategy that goes against some investors’ calls for BlackBerry to ditch the hardware business and focus on software, which pulled in more revenue than smartphones for the first time last quarter.
But Chen has repeatedly said there are loyal business and government clients who want BlackBerry handsets along with its security packages. The smartphone segment still makes up 40 per cent of BlackBerry’s revenue.
The new phone, the company’s second Android device, will start shipping the week of Aug. 8.