BlackBerry launches Passport smartphone in turnaround push

A woman holds the Blackberry Passport smartphone during at a simultaneous launch event in London on Wednesday. BlackBerry unveiled its newest smartphone with a full physical keyboard and a large screen, aiming to return to its roots targeting business users.

Reuters/Toronto

BlackBerry Ltd's  unconventional square-screened smartphone, the Passport, earned mixed reviews at its launch on Wednesday as the company's turnaround push moved into a critical phase in which it must prove its handsets are still desirable.

BlackBerry showed off the new device at events in Toronto, London and Dubai. The smartphone, which has a large touchscreen and a modified version of the company's well-known keyboard, comes to market as the phones of BlackBerry's rivals all converge on a tall, rectangular profile.

The Canadian company says its new device is ideal for professionals who need secure access and editing control of spreadsheets, medical scans and other documents. But reviewers said consumers may be disappointed to find some popular apps, including Instagram, were missing at launch.

"The Passport is a shrine to everything BlackBerry has done over the last 15 years, but none of that is very relevant in today's world," a reviewer for tech website The Verge wrote.

Another tech website, CNET, gave the phone 3.5 stars out of five, praising the keyboard but saying the phone's shape makes it awkward to hold.

Rob Enderle, an analyst at Enderle Group, said BlackBerry could have moved more quickly to combine keyboard and large screen. "Their loyal customer base is very keyboard-driven, and you want to be able to provide them with something that allows them to step into the future," he said.

Users can type to enter text, or swipe lightly across the slimmed-down keyboard to navigate. And using a new system called BlackBerry Blend, they can respond to messages and access information stored on their phones from tablets and computers.

The stock gained more than 3% on Nasdaq to $10.89.

After recently concluding a three-year restructuring process, BlackBerry and its chief executive, John Chen, now must prove the company's new devices and services can generate sustainable revenue and profit.

"BlackBerry is still fighting for survival," said Morningstar analyst Brian Colello. "There is still a lot of execution risk at this point in a very competitive market."

Speaking at the Toronto launch, which included an appearance by retired hockey star Wayne Gretzky, Chen thanked employees who have survived repeated purges of the company's ranks, noting they've been through "very trying times".

"I'm sure we're on our way back," he said.

Passport is now on sale in some North American and European markets, with a suggested retail price of C$699 ($629) in Canada and $599 in the US.

BlackBerry said it expects the price on contract to be about $249. It said the phone should be available in more than 30 countries by yearend. It will be carried by AT&T in the US.

Canada's Telus has a short exclusive window in which it will offer the phone for C$200.

Passport users can download apps from Amazon.com Inc's app store, previously only available for Android-based phones.