Pentagon Says It Is Not Buying Any New BlackBerrys

  • Like on Facebook
  • Share on Google+
  • Share on LinkedIn

source: http://www.flickr.com/photos/janitors/

BlackBerry (NASDAQ:BBRY) stock is up 22 percent this week after news broke that the smartphone carrier had secured a deal with the U.S. Department of Defense to supply smartphones for the department’s new secure network. But now it turns out that the press release from the Defense Information Systems Agency (or, DISA) didn’t allude to any purchases of new BlackBerry devices.

“Absolutely no new orders have been placed for new BB devices. The DISA press release put out January 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,” the Department of Defense said in a statement to The Verge.

The press release from DISA that came out last week said that, “The program currently supports 1,800 unclassified mobile devices including iPad 3 and 4, iPhone 4S and 5, Samsung 10.1 tablets and Samsung 3S, and Motorola RAZR devices with participation from the combatant commands, services, and agencies throughout DOD. The program also supports 80,000 BlackBerry phones.”

Apparently, what the department meant by “supports” is that already existing BlackBerry phones used by members of the Defense Department would be supported by the new network, not that the department plans to buy 80,000 new BlackBerry devices. The release actually contains bad news for BlackBerry, because the super-secure network that Defense Department employees will be using to work on unclassified documents from their mobile devices will be open to devices from competitors instead of being limited to the BlackBerry platform.

The Verge pointed out that BlackBerry has the tendency to release statements when it does get good news (which isn’t all that often), so it was odd that the company had nothing to say about the supposed huge order from the Defense Department.

More Articles About:

To contact the reporter on this story: staff.writers@wallstcheatsheet.com To contact the editor responsible for this story: editors@wallstcheatsheet.com

Yahoo Finance, Harvard Business Review, Market Watch, The Wall St. Journal, Financial Times, CNN Money, Fox Business