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Instant Analysis: BlackBerry Ltd to Make More Android Phones This Year

By Evan Niu, CFA - Jan 7, 2016 at 12:30PM

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BlackBerry is going all in on Android. Sorry, BlackBerry 10.

What happened?
Following the launch of the Priv just a couple of months ago, BlackBerry (BB -4.49%) CEO John Chen has confirmed that it has future Android phones in the pipeline. In an interview with CNET, Chen said that the company intends to release one or two more Android phones in 2016, increasing its bet on the popular smartphone operating system. The executive did not provide additional detail regarding timing or features. Chen also suggested that if its Android phones sell well, that could open up the possibility of making additional BlackBerry 10 devices.

Does it matter?
The Priv's exclusivity period with AT&T will only last for a couple of months, and then it will be available on all four major wireless carriers. Chen said that Priv sales have been "so far, so good" since the device launched. Last month, he noted that the company's handset business continues to approve, and hopes to get it to operating breakeven within a month or two.

Choosing to embrace Android is the right move, and also overdue. BlackBerry should have done this years ago, but better late than never. It seems that BlackBerry is turning its back on its own BlackBerry 10 platform, which may disappoint some of the company's loyal fans, but ultimately it's likely the best strategic call to make given Android's popularity.

Evan Niu, CFA has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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