BlackBerry may put Android software on new smartphone

BlackBerry isconsidering equipping an upcoming smartphone with Google Inc.'sAndroid software for the first time, an
acknowledgement that its revamped line of devices has failed towin mass appeal, according to four sources familiar with thematter.

The move would be an about-face for the Waterloo,Ontario-based company, which had shunned Android in a bet thatits BlackBerry10 line of phones would be able to claw backmarket share lost to Apple's iPhone and a slew ofdevices powered by Android.

The sources, who asked not to be named as they have not been authorized to discuss the matter publicly, said the move touse Android is part of BlackBerry's strategy to pivot to focus on software and device management.

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BlackBerry, which oncedominatedsmartphonesales, now has a market share of less than1 percent.

It is not clear whether a move to use Android would spellthe end of the company's BlackBerry10 line of devices that wereinitially launched to much fanfare in early 2013. After positiveearly reviews, the late-to-launch BlackBerry devices haven'tcompeted well with Android or Apple, mainly due to a lack of bigname apps.

"We don't comment on rumors and speculation,but we remaincommitted to the BlackBerry10 operating system, which providessecurity and productivity benefits that are unmatched," said thecompany in an email.

A Google spokeswoman declined to comment.

Using Android software to send a signal

BlackBerry Chief Executive John Chen is banking on thecompany's new device management system, BES12, that allowscorporate and government clients to not only manage BlackBerrydevices on their internal networks, but also devices powered byAndroid, Apple's iOS platform and Microsoft Corp's Windows operating system.

One of the hurdles it faces in that transformation isconvincing big customers that its device management software
works across many different platforms.

Two sources said that by launching an Android-based deviceof its own, BlackBerry would be sending a signal to skepticsthat it is confident that the BES12 system can not only manage,but also secure smartphones and tablets powered by rivaloperating systems.

BlackBerry will proably use Android on an upcoming sliderdevice that is likely to be released this autumn, two sourcessaid. The slider will combine a touch screen with a physicalkeyboard that users can use if they prefer.

BlackBerry briefly showed off the slider device on stage atMobile World Congress in Barcelona in March, but it has providedlittle detail on it since then.

By making an Android device that boasts a large touchscreenand a physical keyboard, BlackBerry hopes to snag a niche in thetouchscreen-dominated Android market. The device may attractthose still using older BlackBerry keyboard handhelds but whowant access to the larger app options Android offers.

Hardware Conundrum

Two sources said that if BlackBerry moves forward on a planto launch an Android device, it could come with some of thepatented features in its BlackBerry 10 operating system.

In March, BlackBerry announced that it planned to deliverits patented security, productivity and communication tools toany mobile device running iOS, Android or Windows.

The company, which a while ago opened its popular BlackBerryMessaging app to those using rival operating systems, has saidit plans to offer more in-house features on rival devices,including BlackBerry Hub and the predictive text capabilities ofits virtual keyboard.

Chen in March said the company was still committed to itsown devices business.

Since that time however, BlackBerry has cut headcount in itshardware unit even further. The company, which at a 2011 peakemployed 17,500 people and in February was down to 6,225, saidlast month that it was making further cuts on the device side,without providing any numbers.