After teaching the world to type on tiny buttons, BlackBerry could soon
be leaving the business of making phones — leaving fewer options for a
vocal minority still committed to phones with its once popular physical
keyboard.
“It’s not good, not good at all,” said Gord Rosko, the president of GR
Communications, a consulting firm in Edmonton, Alberta.

Mr. Rosko said he had used BlackBerrys for about nine years. “What I
call my fat Polish fingers have a hard time with touch-screen keyboards.
So I’m going to keep using this thing until I can’t anymore.”
The possibility that BlackBerry would exit the handset business was only
reinforced on Friday, when the company announced disastrous financial
results, including a quarterly loss of nearly $1 billion. BlackBerry had
warned last week that the results would be bad, heightening
expectations that it would put less focus on handsets.
In the last few years, most smartphone users have switched to
touch-screen models, like the iPhone, with virtual keyboards that appear
on a glass screen.
That has left few good alternatives for people like Mr. Rosko, especially beyond BlackBerry.
Charles Golvin, an analyst at Forrester who tracks the handset market,
said most phones with buttons were inexpensive models aimed at
teenagers. Most use slide-out keyboards, but those add extra weight and
heft. He offered simple advice for people sticking to a physical
keyboard.
“The way you now interact with phones is through touch screens. Get over
it,” he said. “Maybe the message isn’t just get over it; it’s give
touch screens a chance.”
Still, the chances that some company will try to pick up BlackBerry’s
single-digit market share are good. Ted Schadler, Forrester’s vice
president and principal analyst, said he expected some companies to
experiment with keyboards.
“Then there’s a big question mark of whether people will go for them,” he said.
The experiments may actually come from the companies that overtook BlackBerry in smartphones.
Samsung Electronics, whose Android-based phones are a leader in
smartphone sales, has already offered phones with physical keyboards.
But more important, it is aggressively going after professionals, who
were the first adopters of the BlackBerry and who appear to
disproportionately remain its final users. This year it introduced Knox,
a set of security features for Android aimed at government and
corporate users.
Motorola Mobility, as it rebuilds itself under Google’s ownership, might
also re-enter the keyboard phone market, too. Before the Google
takeover, some of its most popular Android phones included a slide-out
keyboard.
Mr. Golvin said he was skeptical about any company trying to build a
high-end smartphone with a physical keyboard. BlackBerry’s method of
combining a screen and keyboard significantly reduces screen size, he
said. The smaller screen often requires developers to tweak their apps
to work on the different size, making some reluctant to make apps that
work on the phones.
But more important, Mr. Golvin said, is that the overwhelming majority
of smartphone users have spoken and found that the downsides of
on-screen keyboards — namely, more typos — are outweighed by a variety
of other advantages.
While there remains a chance that BlackBerry will continue to churn out
handsets, the company’s results on Friday underscored how big of a
challenge that would be. Because the handset business requires a large
sales volume to be profitable and to sustain development, many analysts
expect BlackBerry to focus its remaining resources on software and
services for corporations.
That strategy could change if the company is sold. The company’s largest
shareholder has made a tentative and conditional offer to buy the 90
percent of BlackBerry’s stock it does not own. But many analysts expect
BlackBerry to soon leave the business of making phones regardless of the
owner.
The loss reported on Friday mainly reflected a $934 million write-down
of a growing inventory of unwanted BlackBerry Z10 phones, the devices
that the company had hoped would restore its fortunes, as well as $72
million in charges related largely to layoffs.
The $1.6 billion in revenue during the three-month period that ended
Aug. 31 was well below the $3 billion analysts had expected and
reflected a 49 percent drop from the first quarter,
Phone sales were just as bad during the period. While BlackBerry said
that 5.9 million BlackBerry phones were sold to customers during the
quarter, many were from inventory that had been shipped to wholesalers
and carriers in an earlier quarter. During the last quarter, BlackBerry
shipped just 3.7 million phones. And most of those phones, the company
said, were older models that it plans to phase out.
Still, there are the devotees, like Jonathan M. Lindsey, a public affairs consultant in Phoenix.
“I am concerned that I’ll have to change the way I do my work,” he said.
He said he had tested both an iPhone and an Android phone, and found
that neither allowed him to type as quickly as a BlackBerry or manage
his e-mail as effectively.
But Mr. Lindsey, who said that he was in his early 30s, said that after
eight years, he was resigned to the fact that the physical keyboard may
soon become a thing of his past.
“I’m not opposed to going through the process of adapting,” he said.
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