BlackBerry's swan song - Priv phone will be launched this week

On November 3, according to foreign media reports, the first Android smartphone launched by Canadian smartphone manufacturer BlackBerry will be launched this week. This product may be BlackBerry's last effort before ending its mobile phone business. If the new product performs poorly in the market, BlackBerry, once the leader in smartphones, may choose to give up its smartphone business.

BlackBerry has launched several new smartphones in the two years since Chen took over as chief executive, but none of them has been able to reverse a steady decline in hardware revenue. Chen has repeatedly said BlackBerry will exit the phone business if it can't make it profitable.

BlackBerry's upcoming smartphone, the Priv, will be powered by a full version of the Android operating system and will be equipped with some of the security and productivity features that BlackBerry is famous for. The name "Priv" was chosen because BlackBerry wants to emphasize the privacy of the device. The BlackBerry Priv will also come pre-installed with an app that can track how many apps on a user's phone are accessing their personal data and location information. The BlackBerry Priv also comes with a sliding BlackBerry signature physical keyboard,

"There may be other products in the BlackBerry lineup, but the BlackBerry Priv does look like the last straw," said Brian Colello, an analyst at Morningstar Investment Services in Chicago. "Over the past few years, BlackBerry has introduced products in different price and form factors, but they all run the BlackBerry OS. This time, the BlackBerry Priv uses a different OS."

As BlackBerry's share of the global smartphone market is less than 1%, the company has shifted its focus to software business with higher profit margins. While Chen Shouzong is trying to revive BlackBerry, he has not given up on the mobile phone business, which still accounts for about 40% of BlackBerry's revenue. Chen Shouzong said in October this year that if the mobile phone business still cannot be profitable, BlackBerry will stop producing mobile phones next year.

Software Business

Chen's current goal is to generate $500 million in software revenue for BlackBerry by March 2016, through acquisitions of security software companies and development of new products such as secure teleconferencing. BlackBerry on Monday completed its $425 million acquisition of Good Technology, a deal that BlackBerry said would generate about $160 million in revenue in the first year.

Ron Louks, BlackBerry's head of devices, said the company would announce a product "roadmap" in early 2016, but declined to say whether it would involve new phones. Chen Shouzong has said BlackBerry will continue to update the BlackBerry operating system.

By launching Android devices, BlackBerry solved one of its biggest problems: how to convince consumers to buy BlackBerry devices with a limited number of apps. As the BlackBerry operating system became less popular, app developers gradually stopped writing apps for the operating system, which also led to more users abandoning BlackBerry products.

Colin Gillis, an analyst at Royal Canadian Capital Markets, believes that if the BlackBerry Priv sells better than its two predecessors, the Passport and Classic, BlackBerry may continue to retain its mobile phone business.

Shipments declined

In the last fiscal quarter ending August 29, BlackBerry smartphone shipments totaled only 800,000 units, falling to the lowest level since 2007.

BlackBerry shares rose 2.9% to $7.50 in regular trading on the New York Stock Exchange on Monday. So far this year, BlackBerry's stock price has fallen 32%.

Analyst Kleil believes that the Priv, which retails for $699, is aimed at "the extremely competitive high-end Android phone market. This market includes competitors such as HTC and Samsung Electronics." During the period when BlackBerry's main business gradually transitions to software business, the BlackBerry Priv will be BlackBerry's last effort to stabilize the company's revenue. He said, "Although BlackBerry has made a lot of efforts to retain its hardware business, the business has not really improved. I think BlackBerry is still looking for a product that consumers can pursue."