BlackBerry Priv wins plaudits, but price tag questioned

By Euan Rocha
TORONTO, Nov 6 (Reuters) - BlackBerry Ltd BBRY.O BB.TO
launched its first Android-based device on Friday, with the
future of the company's hardware business riding on a slick
smartphone called Priv that boasts an impressive array of
features and a hefty price tag.
The company is betting the Priv's large curved screen, full
array of Android apps from the Google (O:GOOGL) Play store and blend of
productivity and security features will help it rebuild its
share of the smartphone market, which has slid to under one
percent.
With hacking and data theft issues becoming a bigger concern
these days, BlackBerry expects keen interest in its pre-loaded
DTEK feature that alerts users every time any app attempts to
access data, or turn on the phone's microphone or camera.
"You will be blown away by some of the apps you use and how
much data they actually access of yours," said BlackBerry's head
of devices, Ron Louks.
The smartphone's "wow" factor, as Louks dubs it, is actually
a throwback - a slide out physical keyboard. While the small
number of such Android 'slider' phones that do exist have had
little success in the market, most are dated and clunky, say
analysts.
BlackBerry is hoping its sleek design and touch-sensitive
keys that allows users to swipe, scroll and set up shortcuts
will woo former loyalists back to using the Priv. urn:newsml:reuters.com:*:nL1N11V2C9
Initial reviews of the device were mixed, with many lauding
its security offerings, long battery life, camera, dual-keyboard
design and other features, but panning the Priv's high price tag
- $699 without a contract in the United States and C$899 without
a contract in Canada.
Still, if the Priv does well, analysts note the device could
be a game changer for the Waterloo, Ontario-based company.
"If the Priv - with its premium price of about $700 - is a
hit, it could drive meaningful growth for the company. Moreover,
the smartphone industry tends to be largely perception-driven,
and a single hit flagship product can bolster a company's brand
image and create a halo effect around its entire product line,"
said research firm Trefis, in a note on Thursday. urn:newsml:reuters.com:*:nL1N11V0HW
Blackberry is pivoting to focus more on software and device
management services but has said it will stick with hardware if
the segment is profitable. urn:newsml:reuters.com:*:nL1N11V2C9
BlackBerry shares rose 4.7 percent to $7.96 in early trading
on Friday on the Nasdaq.