Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

Even the Security-Conscious US Federal Government is Dumping BlackBerries for iPhones

By

The US Immigration and Customs Enforcement agency joins Yahoo and Halliburton in turning away from Research In Motion.

PrintPRINT
MINYANVILLE ORIGINAL The enterprise market is often seen as the last stronghold for Research In Motion's (NASDAQ:RIMM) BlackBerrry.

Because of its perceived superiority in security, the BlackBerry, with its messaging and email encryption technology, has long been the smartphone of choice for businesses and government agencies. However, it seems like even government employees can no longer resist the siren call of Apple's (NASDAQ:AAPL) iPhone.

A New York Times report on the stodgy image of the BlackBerry from last week pointed out that White House staffers had recently switched from the BlackBerry to the iPhone:
Even the White House, which used the BlackBerry for security reasons, recently started supporting the iPhone. (Some staff members suspect that decision was influenced by President Obama, who now prefers his iPad for national security briefings. A spokesman for the White House declined to comment.)

At Slate, Matthew Yglesias argues that federal agencies still remained tied to RIM for the foreseeable future. He points out, "[T]he Executive Office of the president is only a small sliver of federal employment, and these kind of decisions are done on an agency-by-agency basis" so "while 'CEO so-and-so tells her IT department to start supporting cutting edge phones' sounds like good sense, 'Secretary so-and-so wastes taxpayer money upgrading her smartphone' is a potential subject of congressional hearings."

However, Yglesias' thesis might be incorrect because a slew of other government agencies have discarded their BlackBerries for iPhones. Earlier in the year, the Bureau of Alcohol, Tobacco, Firearms and Explosives and the National Oceanic and Atmospheric Administration announced they were making the BlackBerry-to-iPhone transition.

A third agency announced similar intentions this week. According to Reuters, the US Immigration and Customs Enforcement agency, or ICE, revealed in a document that it will spend some $2.1 million to buy iPhones for its 17,676 employees after eight years of BlackBerry use.

ICE said that it had "evolving mobile law enforcement business requirements that require the use of more capable and dynamic mobile technology" and that the BlackBerry "can no longer meet the mobile technology needs of the agency."

One key yardstick that the ICE used in deciding between the various smartphones available in the market was commercial viability. As such, though RIM and Nokia (NYSE:NOK) "help to define the smartphone market," they "failed to innovate and consumers have rejected them. The net effect is that both firms have been relegated to laggards in the consumer market which has made them too risky for adoption as a 'go-to' choice for enterprise use."
< Previous
No positions in stocks mentioned.
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
PrintPRINT
 
Featured Videos

WHAT'S POPULAR IN THE VILLE