BlackBerry to dump handset business if not profitable next year: CEO John Chen

At the Code Mobile conference in California, BlackBerry CEO John Chen publicly admitted that the company would be out of the handset business in a year if it can’t make a profit from it.

On being asked about BlackBerry’s hardware future, Chen - who was the guest speaker at the conference - said, “Sometime next year we have to make our device business profitable, otherwise I have to rethink what I do there.”

It seems that the company’s hardware future rests on the success of its Android-powered Priv, which is expected to be released later this year. Priv boasts a 5-inch touchscreen, slide out keyboard, and capacitive touch on the keyboard, just like the Passport. The phone comes with pure version of Android 5.1.1 Lollipop along with BlackBerry’s security enhancements. Chen also hinted on the pricing of Priv, noting it will have a “high-end price.”

Showing the phone, Chen said, “We wanted to bring the BlackBerry knowhow in security — the whole stack — to Android, recognizing that we need the apps there and the world is about integrating now.”

When asked whether becoming an Android phone maker a path to profitability, Chen replied, “BlackBerry has realized it needs to support other platforms if it’s ever going to succeed. Android in enterprise is a very underserved space. With our connection, our accounts, our knowhow, it has expanded our servable market.”

He also noted that two new releases of BB10 are coming out to support government and high-security space. Chen, however, saved himself from answering the question on whether the company will launch new BB10 devices, saying “that’s going to be dictated by business choices.”

BlackBerry dumping its handset division “if not profitable” may not be shocking for many as the company in past several quarters had made its software focus quite clear. The company is pursuing a turnaround based on software sales; and expects to return to profitability in the fourth quarter.