Did the Pentagon just save BlackBerry?
The device maker has been on the ropes for years, struggling against younger, hipper phones. The Department of Defense just threw the company a lifeline.
By David Francis, The Fiscal Times
The story below originally reported that the Pentagon had announced it would purchase 80,000 new BlackBerry smartphones. That was incorrect and was based on a misreading of the Defense Department’s press release. The Fiscal Times regrets the error.
News reports this week that the Pentagon would purchase 80,000 BlackBerry (BBRY) smartphones – including one published by The Fiscal Times – helped send shares of the troubled mobile phone company soaring. The stock has fallen about 5 percent Friday after the Pentagon clarified that it had not placed any new orders for BlackBerry devices.
In a statement provided to The Verge, the Defense Department said:
"Absolutely no new orders have been placed for new BB devices. The DISA press release put out Jan. 16 never alluded to any devices being purchased. The 80,000 BBs and 1,800 non-BB devices referenced in the release are legacy systems already in DoD inventories."
What had seemed like a solid win for BlackBerry turns out to be just more of the same for a business that has been on the ropes and had a dismal 2013. Last year, BlackBerry lost $4.4 billion and saw its stock price fall 33 percent.
There is some good news, though: Last month, the company finalized a deal with FIH Mobile to create a handset, which will give BlackBerry the opportunity to move away from its reliance on phone sales.
Still, it's a far cry from the heady days of 2008, when the stock was trading at $148.
More from the Fiscal Times
Did everything I ever needed it to do.
If you want privacy don't buy an iPhone or an Android, government already has them on their 'side'.
There may be several reasons for the procurement from Rimm or BB in Canada..
I guess we/they could buy Apple's made in China...
But many comments point out Security, durability, and ease of use, plus Military already has them...
I really doubt any jobs will be eliminated here in America....May have some bearing on trade agreements also, involving NAFTA....
Do we want our neighbors to the North (Canada) buying $80 million dollar planes from an American company or maybe from the French or Chinese ???
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Serious issues like drought and the deterioration of the developed world spell opportunity for this industry leader.
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