Newspaper article International New York Times

BlackBerry to Run New Phone with Android

Newspaper article International New York Times

BlackBerry to Run New Phone with Android

Article excerpt

BlackBerry's announcement that its phone would run on the Android operating system confirmed a rumor that has been circulating for months.

Struggling for relevance in the smartphone business, BlackBerry is turning to Google's popular mobile software for a helping hand.

BlackBerry said on Friday that it would make a phone that runs the Android operating system, confirming a rumor that has been circulating for months. The company released another sour earnings report on Friday as well that underscored the importance of finding a successful product.

The move to Android should address at least one limitation of the appeal of BlackBerry's smartphone: a lack of apps. The Android phone will be able to run the more than one million apps already created for that software.

The new BlackBerry phone is widely expected to have a large touch- screen face and a pullout physical keyboard. While he did not talk about the design, John S. Chen, the company's chief executive, said the phone would be called the Priv, an allusion to privacy and privilege. He added that his company was working with Google to give it additional security compared with other Android phones.

"This phone is the answer for former BlackBerry users who missed the physical keyboard but also need apps," Mr. Chen said.

The company could use a hit. It reported a larger-than-expected loss of $66 million, excluding accounting adjustments, or 13 cents a share, for its second quarter. Analysts had been expecting a loss of 9 cents a share.

Revenue was $490 million, compared with $916 million in the same period a year ago.

While Mr. Chen says he wants the company to make more money from selling software than from selling hardware, that point appears to be in the distant future. During the quarter, software and related services accounted for just 15 percent of revenue while hardware contributed 41 percent. …

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