Struggling smartphone company BlackBerry has released its response to the “phablet” craze: the Passport. Designed like the boxy object for which it is named — “the universal symbol of mobility,” BlackBerry said – the Passport is a 4.5-inched square that BlackBerry touts has better resolution than Apple's AAPL -3.79% iPhone 6 Plus or Samsung’s Galaxy S5. Yet for all the superlatives included in the Passport announcement, early Wall Street reviews have been quick to point out that the Passport might have trouble taking off.
Based on the details about the new phone that BlackBerry released Wednesday afternoon, the Passport is aiming to meet (and surpass) its competitors feature by feature while also amending the company’s previous missteps: Siri, meet BlackBerry Assistant. Struggling with that iOS 8 battery life? BlackBerry says its new phone has “the largest [battery] among the top selling smartphones and phablets and, when tested against a very active user, provides up to 30 hours of mixed use.” And for BlackBerry devotees who were shocked by the Z10′s missing keyboard, the Passport has brought the keyboard back.
“The BlackBerry Passport was created to drive productivity and to break through the sea of rectangular-screen, all-touch devices,” BlackBerry chairman and CEO John Chen said in a statement.
Unfortunately for Chen, early reviews indicate that the Passport might be too square to be hip.
“We believe the square shape of the screen could make the vast store of Android apps now available via the Amazon app store a disappointing experience as most were designed for a longer screen implying they would need to be redesigned,” wrote Citi analyst Ehud Gelblum in a note on Wednesday.
Gelblum also criticized BlackBerry’s pricing plan, which calls for the Passport to be available in the US (via Amazon) and in Canada (via Telus) for a “6-day exclusive for $200″ with a two-year contract, but that price will rise to $250 on October 1. Without a contract, the Passport will cost $599, but Gelblum said that BlackBerry has plans to raise that price, a move he called “an odd and not very customer-friendly decision.” As it is, the Passport is only $50 cheaper than the iPhone 6; it’s more competitive against the iPhone 6 Plus, which costs $150 more than the Passport.
The Passport announcement was not enough to move Citi’s price target or rating for BlackBerry; the investment firm reiterated its “sell” call and $8 price target.
Deutsche Bank analyst Brian Modoff was not quite as negative on the product as Citi’s Gelblum, but nonetheless was unimpressed. ”There was nothing that struck us as transformative with the device or the software update, but then again, it is possible that Blackberry does not need to be transformative at this point, just iterative enough to keep the faithful loyal,” he wrote in a note Thursday morning. “The Passport could help, but our thought is that the soon-to-be-released Blackberry Classic does a better job of appealing to their base.”
Modoff said that he attended BlackBerry’s launch event in Toronto, the theme of which was “Canadian Comeback.” But echoing Gelblum’s critique of the app experience within BlackBerry devices, Modoff wrote that he’s skeptical of BlackBerry’s ability to complete this comeback.
“We think it will be a challenge for this device to be the one that ‘brings Blackberry back’ or even attains meaningful traction in developed countries,” he said.
Deutsche Bank also reiterated its prior rating and price target for BlackBerry, saying that it maintains its “hold” and $8 per-share target.
Reviewers off Wall Street were equally skeptical. Consumer Reports said in a review that prospective customers may want to think twice about investing in BlackBerry hardware given the fact that its most recent introductions to the smartphone market — the Z10, Q10 and Z30 — were “middling performers.”
The consumer site allowed that “‘Crackberry’ addicts will appreciate the physical keyboard, which has the same look and feel as those on BlackBerry phones of the past,” but went on to say that “some people may will find one-handed operation with this wide-bodied phone, which measures 5.04 x 3.56 x 0.37 inches, impractical under most circumstances.”
Shares of BlackBerry, which closed down by about 0.5% on Wednesday, continued their descent in early Thursday trading; shares are currently down 2.95%. Year-to-date, however, the stock has reversed its abysmal 2013 performance (it lost 36% of its value in 2013 trading) and is up about 37%.
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