Blackberry is betting its new Z10 smartphone will be a game changer for the company, but it's not likely that bet will pay off, said Colin Gillis, an analyst at BGC Financial, on Friday.
"They've done a nice job in rolling out the Z10; unfortunately, I still don't think it's going to be enough to turn the company around," Gillis said on CNBC's "Squawk on the Street."
Gillis, who has a "sell" rating on the stock with a price target of $7, said that the Blackberry Z10 does not offer consumers enough value to compete with Android devices or with Apple's iPhone.
"The email functionality is decent, the keyboard functionality is decent, but it's still an ecosystem that's not nearly as robust as what you can get from Apple or Google." Gillis said. "You just don't have the depth that each of those services brings to its platform."
However, there are 79 million Blackberry subscribers, so the company could get a boost from its current users upgrading to the new platform, Gillis said. But it's unlikely sales of the new device will actually meet the company's expectations, he added.
Blackberry needs to sell more than five million of the new Blackberry Z10 mobile phones per quarter to have a viable company, which is not likely, Gillis said.
