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TORONTO - BlackBerry (BB.TO) is considering equipping an upcoming Smartphone
with Google Inc.'s (GOOGL.O) Android software for the first time, an
acknowledgement that its revamped line of devices has failed to win mass
appeal, according to four sources familiar with the matter.
The move would be an about-face for the Waterloo, Ontario-based
company, which had shunned Android in a bet that its BlackBerry 10 line of
phones would be able to claw back market share lost to Apple's (AAPL.O) iPhone
and a slew of devices powered by Android.
The sources, who asked not to be named as they have not been authorized
to discuss the matter publicly, said the move to use Android is part of
BlackBerry's strategy to pivot to focus on software and device management.
BlackBerry, which once dominated Smartphone sales, now has a market share of
less than 1 percent.
It is not clear whether a move to use Android would spell the end of
the company's BlackBerry 10 line of devices that were initially launched to
much fanfare in early 2013. After positive early reviews, the late-to-launch
BlackBerry devices haven't competed well with Android or Apple, mainly due to a
lack of big name apps.
"We don't comment on rumors and speculation, but we remain
committed to the BlackBerry 10 operating system, which provides security and
productivity benefits that are unmatched," said the company in an email.
A Google spokeswoman declined to comment.
BlackBerry Chief Executive John Chen is banking on the company's new
device management system, BES12, that allows corporate and government clients
to not only manage BlackBerry devices on their internal networks, but also
devices powered by Android, Apple's iOS platform and Microsoft Corp's (MSFT.O)
Windows operating system.
One of the hurdles it faces in that transformation is convincing big
customers that its device management software works across many different
platforms.
Two sources said that by launching an Android-based device of its own,
BlackBerry would be sending a signal to skeptics that it is confident that the
BES12 system can not only manage, but also secure smartphones and tablets
powered by rival operating systems.
BlackBerry will probably use Android on an upcoming slider device that
is likely to be released this autumn, two sources said. The slider will combine
a touch screen with a physical keyboard that users can use if they prefer.
BlackBerry briefly showed off the slider device on stage at Mobile
World Congress in Barcelona in March, but it has provided little detail on it
since then.
By making an Android device that boasts a large touch screen and a
physical keyboard, BlackBerry hopes to snag a niche in the touch screen-dominated
Android market. The device may attract those still using older BlackBerry
keyboard handhelds but who want access to the larger app options Android
offers.
Two sources said that if BlackBerry moves forward on a plan to launch
an Android device, it could come with some of the patented features in its
BlackBerry 10 operating system.
In March, BlackBerry announced that it planned to deliver its patented
security, productivity and communication tools to any mobile device running
iOS, Android or Windows.
The company, which a while ago opened its popular BlackBerry Messaging
app to those using rival operating systems, has said it plans to offer more
in-house features on rival devices, including BlackBerry Hub and the predictive
text capabilities of its virtual keyboard.
Chen in March said the company was still committed to its own devices
business.
Since that time however, BlackBerry has cut headcount in its hardware
unit even further. The company, which at a 2011 peak employed 17,500 people and
in February was down to 6,225, said last month that it was making further cuts
on the device side, without providing any numbers. — Reuters
