BlackBerry's (BBRY) quarterly results left a poor taste for investors. Overall revenue fell as SAF (system access fees) continued falling. The pace of recovering the SAF drop with software and hardware sales simply is not there.
BlackBerry is constrained, but now it must double-down its efforts. How?
Focus on hardware, with the singular goal of break-even and up to 30-40 percent profit margin for new Android devices. Apple's fight for security and privacy shows consumers want encryption. BlackBerry's handset division HAVING PHYSICAL KEYBOARDS is win-win.
It's time.
Priv, the slideout android, is a proof of concept validating the demand for this kind of device in enterprise and in the consumer space.
BlackBerry simply must lever its know-how in Android security and roll out at least additional more devices:
1. Classic-style bold but with bigger screen.
2. Passport Android
3. Curve-style Android – cheap but with bigger screen.
BlackBerry said on its conference call Classic device production was supply-constrained. The parts are just getting old. BlackBerry must clearly refresh the product.
The Leap device should shift to EOL. All touch-screen devices running BB10 have no place competing with Windows 10 Phone ($199 CAD) or Android (old HTC phones). This is Samsung and Apple's domain. Replace Leap with a phone having a Z10-sized screen and a physical keyboard.
Once the quarterly run rate of 1M/Qtr done, sell the hardware division to Google (GOOGL).
