In a desperate bid to revive a deteriorating handset business, Canadian handset maker BlackBerry Limited (BBRY) has come up with a unique square-shaped 4.5-inch screen HD support smartphone called “Passport”.
The company unveiled this smartphone yesterday simultaneously at events in Toronto, London and Dubai. With the release of Passport, BlackBerry hopes to win back lost corporate and government customers.
Suitable for reading e-books, viewing medical charts and other documents, this smartphone will display 60 characters in a single line instead of the traditional 40 characters. The phone has a 30-hour battery life along with 3GB of RAM and 32GB of storage space. Passport is priced at $599 without a contract in the U.S, which is more pocket-friendly compared to the likes of Apple Inc.’s (AAPL) latest iPhone6 or iPhone Plus and Samsung Galaxy S5.
BlackBerry Blend
Along with Passport, BlackBerry also released a new app called BlackBerry Blend. BlackBerry Blend is a multiplatform application that allows data syncing across computers and mobile devices like smartphones and tablets, and even across different operating systems, without the need for a virtual private network. BlackBerry Blend users will be able to benefit from the secure BlackBerry network when transferring messages and content between smartphones, tablets and personal computers.
This application is available on the BlackBerry Passport smartphone. Windows and Mac PC users can download the app from the company’s website while Android and iPad users can download it from the Google Play store and Apple App Store, respectively.
Dwindling Market Share
According to research group IDC, BlackBerry’s market share in the second quarter of 2014 plunged to 0.5% from 13.6% in the year-ago period. BlackBerry was once a leader in the smartphone industry. However, over the last few years, the company’s handset business has deteriorated drastically in the face of stiff competition from Apple’s iPhones and Google Inc.’s (GOOG) Android-based devices. In the first quarter of fiscal 2015, BlackBerry sold only 2.6 million smartphones, down from 3.4 million in the previous quarter.
We believe the unique square-shaped BlackBerry Passport phone should help reinvigorate the company’s smartphone sales and market share, aiding the segment to return to profitability. The company also plans to launch a new classic phone at the end of this year.
Focus on Growth
Blackberry holds that with its restructuring process finally over, it now seeks to focus on growth. In the past, as part of its restructuring program, BlackBerry sold its Germany R&D assets to Volkswagen Infotainment – a division of Volkswagen AG, its U.S. headquarters in Irving and vended most of its real estate holdings in Canada. The company has also cut down on its workforce over the last three years.
The spin-off and trimming of workforce was deemed as an attempt by the Blackberry to boost its dismal cash position and bring itself back on the profitability track.
A Stock that Warrants a Look
BlackBerry currently has a Zacks Rank #3 (Hold). China Mobile Limited (CHL), with a Zacks Rank #1 (Strong Buy), is a better-ranked stock worth considering in the wireless industry.
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