BLACKBERRY BANKS ON SECURITY ANXIETY WITH NEW DTEK50.
Zeroing in on security gives BLACKBERRY Ltd. a real shot at eking out a slightly bigger niche in the smartphone market, but only if the former industry titan can stand behind its claim that it created the “world’s most secure Android.”
Tech and marketing experts were cautiously optimistic about Black Berry’s high- security sales pitch for the DTEK 50, released Tuesday by the Canadian company that’s fighting to keep its hold on government and business clients after being largely abandoned by consumers. Investors seemed to like it, too – Black Berry’s stock bumped up two days in a row, closing at $9.98, up 4.7 per cent, on Wednesday in Toronto.
Black Berry hopes to sell the new phones primarily to small and medium enterprises without resour- ces to adequately protect themselves i n the cybersphere, head of global sales Alex Thurber said during the product launch. Rather than selling customers on “pure fear, uncertainty and dread,” Black Berry painted itself as the choice for the security-conscious.
It’s a message that experts believe will resonate with businesses, with the caveat that the latest device isn’t likely to jolt BlackBerry to success in the consumer market.
Anxiety over security is a growing trend, so leveraging its nascent success in mobile security software is “probably the only hand BlackBerry has left,” said Allen Adamson, who runs New York- based Brand Simple Consulting.
“With the politics, hacking, stolen emails from the Democratic National Committee, it’s certainly a high anxiety time in the U. S.,” he said. “Anyone tapping into that anxiety is tapping into a real fear and concern among many, many consumers.”
If the new phone’s security benefits are meaningful, BlackBerry could attract business customers ( and maybe suck in some consumers) in an ultra-competitive market that it no longer has the scale to dominate, he said. But it will need to prove the phone is legitimately secure to lure sophisticated clients.
“If it’s just 98 per cent the same and just two per cent security, if it’s smoke and mirrors, that’s not going to be able to get the brand back on the map,” he said.
Made by China’s TCL, the DTEK50 is basically an Android Alcatel Idol 4 dressed up as a BlackBerry and loaded with extra security features, including software and hardware tweaks. Initial reviews from tech websites including The Verge and Tech Radar were fairly positive.
As for proof the device is the most secure, BlackBerry stated it has the same security software features as its predecessor the Priv, which didn’t sell well due to its high price. It uses DTEK software to monitor security and alert users when they’re at risk. It also promises to provide security patches the very day updates become available, which is much faster than its competitors. It doesn’t have a fingerprint sensor.
BlackBerry has refused to give up on its foundering smartphone segment — it sold just 500,000 devices in its most recent quarter compared to Apple Inc.’s 44 million iPhones – despite calls from investors to drop out of the race. CEO John Chen set a September deadline to stop losing money in the division ( it lost US$ 21 million last quarter) and insists BlackBerry needs to make smartphones to provide endto- end solutions for loyal customers who demand the highest security.
Schulich School of Business marketing professor Alan Middleton doesn’t believe the new phone will be enough for BlackBerry to turnaround the segment by September, but commended the company for finally focusing on security.
“If t hey can establish themselves as the secure place to go, that’s a powerful position,” Middleton said. “The risk is they take this positioning and then they get hacked to hell …. I hope they’ve got a whole bunch of hackers out there trying to break their systems down.”
The other risk is if BlackBerry tries too hard to grab consumers and loses focus on the business market, which is slower but more cost effective, he said. He doesn’t think BlackBerry’s security position will be hurt by recent reports of its co- operation with the RCMP, he said.
Krista Collins, IDC Canada’s research director for mobility, anticipates businesses t hat already use BlackBerry, especially in the finance and legal industries, will be most interested in the new phones. But she doesn’t anticipate a wide uptake for companies that use another platform.
“If they’ve already made the switch, it’s hard to go back,” Collins said. “We know that employees have a lot of say in this day in age in brand selection when it comes to smartphones.”
BlackBerr y’ s s ec urity l egacy still appeals, she said, but employees’ personal preferences can stop employers from making a switch. If they don’t use the hardware itself, however, she noted that BlackBerry’s security software is now available on all devices.