BlackBerry’s Continued Pentagon Dominance Reaffirms its Position

by Istvan Fekete on January 21, 2014

BlackBerry has finally received some good news: its shares rose the most in a month after the US Department of Defense announced that the handsets will account for 98% of devices on one of its networks, reports Bloomberg.

The Department of Defense will begin deploying a new wireless device management system by the end of the month. The system will connect as many as 100,000 new mobile devices, and as the press release highlights, it supports 80,000 BlackBerry devices compared to 1,800 iPad 4 and 4, iPhone 4S and 5, Samsung 10-1 tablets, Samsung 3S, and Motorola RARZ devices.

As a result, the struggling Canadian smartphone manufacturer’s shares rose 8.2% in Toronto, its biggest gain since December 20, after dropping 33% last year.

Fact is, BlackBerry is losing market share in the US to Apple’s iOS and Android handsets, and this isn’t a new trend. As multiple reports from comScore, NPD Group, Gartner, and Kantar Worldpanel ComTech point out, users are tending drop their BlackBerry handsets in the country for the latest Apple or Android smartphones. Of course, the reason may vary from person to person, but overall BlackBerry’s devices fail to carry the same features and range of consumer-focused applications as its competitors.

With the new BlackBerry 10 devices, the smartphone maker has managed to rack up similar tech specs, but as the company’s market share dropped, developers have been skipping the BlackBerry app store, and focusing on iOS and Android users instead, despite the company’s huge marketing efforts.

The picture looks different with clients such as governments: while Apple and Samsung have their way paved to clients such as DOD, they are having a tough time meeting their expectations. BlackBerry, on the other hand, already meets the requirements.

“It’s a challenging specification and other vendors are having a tough time meeting it,” said Pollitt, whose brokerage owns shares of BlackBerry. “BlackBerry has already has got it.”

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Written by: Istvan Fekete. Follow by: RSS, Twitter, Facebook, or YouTube.

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