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Will Mid-Tier Android Smartphones Save BlackBerry's Falling Hardware Business?

by Linda Sui | Jun 24, 2016

BlackBerry released another disappointing results of smartphone hardware business this week.  Its smartphone shipments fell by a dramatic -55% in the second calendar quarter of 2016. Even as it has expanded distribution channels for its first Android smartphone, device volumes are in freefall. Despite the dire situation BlackBerry CEO remains outwardly confident that the unit can achieve profitability this year. However, we believe at current run-rates by volume achieving that goal will be impossible.

While the first Android device Priv is poorly received, BlackBerry expect to release a mid-priced Android smartphone in Q3’16, that will put that confidence to the test. As we pointed previously, if BlackBerry really want to come back into Android camp, a new sub-brand and related marketing campaign / promotions are urgently needed to move the needle. Otherwise, we would see the Canadian vendor will be forced to withdraw from smartphone hardware business in the following few quarters.

Wireless Smartphone Strategies (WSS) service clients please click here to access the full report.

Image result for BlackBerry Android logo

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