Blackberry rethinks keyboard

BlackBerry
launched an unconventional new smartphone dubbed
the Passport on Wednesday as it embarked on what may
be the most critical phase of its long turnaround push.
At simultaneous events in Toronto, London and Dubai,
BlackBerry showed off the device, which is the size and
shape of a closed passport, with a large square
touchscreen as well as a keyboard. The Passport comes
to market as the phones of BlackBerry's rivals converge
on a single profile, with tall, rectangular screens and
smooth corners.
Users can type on the Passport's keyboard to enter text,
or swipe lightly across it to navigate through the phone.
BlackBerry recently concluded a three-year restructuring
process, and it is now up to Chief Executive John Chen
to prove that the company's new devices and services
are capable of generating sustainable new streams of
revenue and returning it to profit.
"BlackBerry is still fighting for survival. They still need
to turn around and develop a viable ongoing business
model," said Morningstar analyst Brian Colello.
"Their products are certainly pointing toward that and
the new strategy makes sense, but there is still a lot of
execution risk at this point in a very competitive
market."
At the Toronto event, Chen brought out retired National
Hockey League star Wayne Gretzky to talk up the
Passport's features.
The device is set to go on sale in some markets on
Wednesday, with a suggested introductory retail price of
C$699 ($629) in Canada and $599 in the United States.
BlackBerry said it expects the price on contract to be
about $249, depending on the carrier, and that the
phone should be available in more than 30 countries by
the end of the year. It will be carried by AT&T in the
United States.
Passport users will be able to download apps from
Amazon's app store, previously only available for
Android-based phones. BlackBerry announced the deal
that cleared the way for its customers to access
Amazon's store in June.
The launch kicks off a busy period for Waterloo, Ontario-
based BlackBerry. The company is set to report its
second-quarter results on Friday and within a couple of
months it is also expected to launch the long-awaited
BlackBerry Classic, which bears similarities to its once
wildly popular Bold smartphone.
"BlackBerry just needs one hit phone for now," Colello
said. "It doesn't quite matter whether it is the Passport,
the Classic or anything else, but they do need one
device to jump-start the hardware business again."
The company hopes the Classic and the launch of its
new mobile device management system - BlackBerry
Enterprise Service 12 (BES12) - will help it claw back
ground ceded to rivals in both the hardware and
services market.
The BES 12 platform will allow IT managers at large
companies and government agencies to not only manage
and secure BlackBerry devices, but also manage
Windows-based devices, and more easily administer
Android and iOS devices.
Chen, a well-regarded turnaround expert in the tech
sector, wants BlackBerry to remain a competitor in the
smartphone arena, but he is focused on reshaping the
company to build on its core strengths in areas such as
mobile data security and mobile device management.
BlackBerry is betting that the enhanced security features
on its BES 12 platform, coupled with a range of value-
added services, will help revive revenue growth and
stem its slide.
BlackBerry's shares rose 2.9 percent to $10.87 in early
trading on Nasdaq on Wednesday.