Can the New BlackBerry Phones Help Change the Company's Tide?
NEW YORK (TheStreet) -- BlackBerry (BBRY) took to the global stage in Barcelona to announce plans to release four new phones this year, including a new, low-cost touchscreen model called the Leap. The real question is whether these new devices will help bring the one-time industry leader level with the current playing field.
Even though Blackberry has been letting everyone know that it's no longer just a smartphone company, with plans to push its software and services to Apple's (AAPL) - Get Report iPhones and Google's (GOOG) - Get Report Android OS, it still is focusing some attention on its handsets. At the Mobile World Congress, BlackBerry announced a new, touchscreen-only model and slyly teased a curved-screen slider phone that's coming in the near future. Hardware still accounts for a majority of BlackBerry's revenue.
Ken Dulaney, a vice president and analyst with Gartner, isn't sure that just introducing new phones will be enough. "Having more hardware is a good thing," he said over the phone. More important, he suggested, is the relative lack of apps for BlackBerry's ecosystem, compared to Android and Apple. "BlackBerry does a great job, but it's all the other things that count," he added.
BlackBerry shares were down slightly Tuesday, falling less than 0.3% to $11.02 in mid-afternoon trading in New York.
The company's first new model for 2015 is called the BlackBerry Leap, and looks like a update of the Z30 with a larger display. BlackBerry describes the phone as being designed for "young mobile professionals who value security and privacy in a modern and powerful design package."
Leap will come with a 5-inch touchscreen (1280 by 720 pixels), a 1.5 GHz Qualcomm (QCOM) - Get Report Snapdragon S4 Plus processor mated to 2 GB of RAM, 16 GB of internal storage (along with a microSD card slot) and an 8 MP camera on the back (but no camera up front). BlackBerry claims users can get up to 25 hours of use from a fully charged battery.
But the new phone's best feature could be its price. Leap will cost about $280 when it goes on sale in Europe next month. BlackBerry did not announce when Leap might be available in the United States, or the domestic pricing.
The other new phone BlackBerry was showing off was more of a tease than a formal announcement. During BlackBerry's presentation, hardware executive Ron Lukes pulled two samples of a second device from his jacket pocket. The unnamed device is a slider phone (offering a physical, slide-down QWERTY keyboard) with a large, screen that curved at the edges, similar to the new Samsung (SSNLF) Galaxy S6 Edge that was recently announced.
"It's an encouraging step, and Blackberry's new Leap fills a niche for loyalists who want a touch-screen device," said Mark Sue, managing director at RBC Capital Markets. "At an attractive price point, it addresses a market for corporates who still want to containerize and maintain a high level of security."
Neither a price nor an availability date were announced for the unnamed phone.
BlackBerry also announcement a deal with Sprint (S) - Get Report to offer BlackBerry's multiplatform enterprise mobility management solution for enterprise customers. The system allows companies to control employees' mobile phones no matter what operating system they use. At present, Sprint offers only one BlackBerry handset, the older Q10 smartphone.
Despite the new phones unveiled, the company is firmly focused on enterprise software and security. In this space, it competes with several other large technology companies, including IBM (IBM) - Get Report, and nothing is certain for BlackBerry, Sue noted. "The larger opportunity, of course, lays in software and how Blackberry can make that transformation, and every little bit helps along the way with new hardware."
Gary Krakow is TheStreet's Senior Technology Correspondent
This article is commentary by an independent contributor. At the time of publication, the author held no positions in the stocks mentioned.