Is Obama bailing out the BlackBerry?
The federal government remains a loyal customer for Research In Motion even as everyone else jumps ship.
The federal government and bureaucracy go hand in hand. Change does not come easy there -- and Research In Motion (RIMM) is grateful for it.The company's BlackBerry devices get bashed daily. People are leaving in droves for phones running on systems from Apple (AAPL) and Google (GOOG).
But not the feds. At the center of our government, where "time stands still," half a million federal employees still use the BlackBerry, The Washington Post reports. That number has stayed stable over the years despite all the problems with BlackBerry maker Research In Motion.
Even President Obama still has one.
Officials give several reasons for sticking with the BlackBerry, the Post reports. The phone is secure. The tech guys know how to fix them. And RIM gave the government good deals through years-long contracts.
So maybe in its own, glacier-like way, the federal government is giving the BlackBerry a bailout.
The Canadian company's share of the U.S. market is plummeting. At the end of February, only 13.4% of smartphone subscribers used a BlackBerry. That's down 3.2% just since November, according to comScore.
One analyst predicts RIM will go out of business in the following video.
Post continues below.
At this rate, we could see RIM down to precarious levels soon. Already some analysts are talking about the company possibly going bankrupt.
But at least RIM has the U.S. government to fall back on. And as government spending continues to be a hot-button political issue, any overhaul of employee mobile phone usage is doomed.
Uncle Sam will be there for you, RIM, right to the very end.
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People must really not read the articles. The author is suggesting that the fed's contract with RIM almost is as if the fed is bailing out RIM - as in, its the only large client keeping RIM afloat. Please read the articles before you post. It has nothing to even do with Obama. Sure he has one, as the article mentioned, but I am sure the fed had this contract for MANY years.
Oh and what an AWFUL title to this article. The author should have their head examined.
People really don't get "security". Who cares if Blackberry fails? Unless you want your IRS info secure, your banking info secure, your credit card info secure, your medical records secure.
As a healthcare provider I have to be sure that your records are safe from prying eyes.
I know that Apple's browser has been cracked by Google, Android phones are about as secure as screendoors.
This Really has nothing to do with propping up a company as much as working within a secure environment.
I don't think most people look into an issue like this before throwing out their opinion.
Blackberry is Canadi****xander Graham Bell was Canadian, and all the oil in the sands of
Alberta is Canadian, yet it seems most of you want to believe the US and/or Obama has some kind of control here. The reason the US Government uses Blackberry is it was the best of cutting edge technology, and has a much more secure operating system.
Myself, I don't particularly think that Government employees need a communication system to play 'Angry Birds' and access the latest scores in a sporting event.
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