BlackBerry is reportedly having some issues in its transition to Android. A report from CNET quotes a "high-level executive" at AT&T as saying "The BlackBerry Priv is really struggling."

The carrier exec gave CNET a big list of reasons why the Priv was failing. Both companies expected to see demand for an Android phone with a physical keyboard, but that demand never materialized. BlackBerry apparently has a problem appealing to the general public, with the report saying that "most of the buyers were BlackBerry loyalists." Those die-hard BlackBerry users struggled to adapt to Android, which the executive says led to the higher returns.

Blackberry's Q4 results came out in April, and they show lagging performance, too. The company sold 600,000 handsets for the quarter, which was short of Wall Street's expected 850,000 units.

BlackBerry's own CEO, John Chen, has called out sales of the Priv as critical, saying the company was thinking of getting out of the hardware market. "Sometime next year (2016) we have to make our device business profitable, otherwise I have to rethink what I do there," Chen told Recode last year. "We do what makes sense to serve the customer. Even if I'm not in the handset business, getting into providing security for Android lets us provide solutions via software."

Chen has said the company still has two more "mid-range" Android phones in the works, which should come in somewhere around the $400 price point.