I was recently in the market for a new phone. After careful deliberation I settled on the BlackBerry Ltd. (TSX:BB)(NASDAQ:BBRY) Passport model.

There were a bunch of things that sold me on the BlackBerry. The size was the perfect compromise between the smaller smartphones and the phablet models. I also really missed the physical keyboard from my previous phone. And reviews said the Passport’s battery life was top notch.

But after a week of using the phone, I have to say I’m not terribly impressed. The keyboard is too big, which slows me down. The battery barely lasts the whole day. And worst of all, the app selection is terrible. My bank and broker’s apps are nonexistent on BlackBerry, even after the company signed a deal with Amazon, allowing BlackBerry to access its app store. There are other notable apps missing too, like Netflix.

It’s gotten to the point where I’m pretty happy it came with a 30-day money-back guarantee. I’m going to use it for a few more days to see whether it grows on me, but right now I’m leaning towards returning it and going with an Android phone.

As a BlackBerry supporter over the years and a current shareholder, I have to admit I’m feeling a little conflicted. I think the company has a future in things like software and security, but until it can get the app situation sorted out, I think it’s doomed to fail in the smartphone space. This, combined with the recent decline in the share price of more than 25%, is making me think twice about owning the company.

The future in software

BlackBerry bulls constantly point to the company’s future in the Internet of Things, a massive market that is estimated to be worth some $19 trillion in the upcoming years, at least according to industry insiders. Just looking at my own habits, I can certainly see there being a demand for smart devices. You have to admit, they’re pretty cool.

BlackBerry is having some decent success in the software part of the business, too. Approximately half of the company’s revenue comes from software, which has much larger profit margins than the hardware business. And as the number of smart devices continues to expand, so will the company’s ability to grow its top line.

One area the company already dominates is in the auto sector. BlackBerry currently makes the software for the in-dash entertainment consoles in many different models of cars. It even beat out rival Microsoft to gain the contract from Ford.

Just get out of phones already

Even before I bought my BlackBerry, I was almost convinced the company needed to get out of the handset business. Now I’m 100% sure for two reasons.

First, it’s sitting on a bunch of valuable patents that are almost worthless as it stands right now. That’s because if it sues competitors over features that violate its patents, those competitors will just sue right back. Essentially, all the major handset makers are caught in a game of chicken, and nobody dares to blink.

According to analyst reports, BlackBerry could make up to $400 million per year just from collecting royalties from its patent portfolio. Considering it made just a little over $100 million in operating income from selling phones in 2014, it’s obvious what the more profitable choice is. And that’s not even considering the possibilities of licensing out the BlackBerry name or operating system to another manufacturer.

Second, getting out of the phone business will allow it to focus on its strength: the security part of the operating system. Competitors will be more likely to work with a company that isn’t also trying to win over the same customers.

CEO John Chen has done a great job of turning around BlackBerry so far. I’d like to encourage him to take the next step of getting out of the phone business completely. It just makes sense.

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Fool contributor Nelson Smith owns shares of BlackBerry. David Gardner owns shares of Amazon.com, Ford, and Netflix. The Motley Fool owns shares of Amazon.com and Netflix.