Research in Motion Ltd. (BBRY) Stymied by U.K. Security, U.S. Sequester

Research in Motion Ltd. (NASDAQ:BBRY) has been celebrating some recent news as it prepares to launch its Z10 handset and new BlackBerry 10 operating system on U.S. store shelves March 22. Recently the company secured a major contract for its new handset with the German government, then a couple days later announced an order of 1 million smartphones from a single customer – though that customer has not been officially revealed.

However, with less than 48 hours before the BB10 launch on U.S. shores, Research in Motion Ltd. (NASDAQ:BBRY0 has encountered some headwinds in its pursuit of becoming a vital tool in the government enterprise. Across the pond from each other are two news items – one that says that the U.K. government has rejected the new BlackBerry due to security concerns, and the U.S. government is reportedly retiring its old BlackBerry devices and not replacing them with new ones – yet.

BlackBerry Ltd (NASDAQ:BBRY)

In the U.K., Research in Motion Ltd. (NASDAQ:BBRY) has been prevalent in the governmetn, with its old OS passing security tests to where the smartphones culd be used at security levels up to “Restricted,” two levesl below “Secret.” Those devices, the company said, were the most secure mobile devices due to the security level achievement. This time around, however, the U.K. government unit that tests security of devices, made the finding that BlackBerry 10 does not meet muster for any security level.

Research in Motion (NASDAQ:BBRY) said in a statement that it blames its result on a re-configured approval process that shortened the timeline for BB10 to be deemed secure. The company referred to Germany and the U.S. as examples of the new OS meeting the security needs of government entities, and it maintained confidence that it will receive approval upon re-application.

Here in the States, Research in Motion Ltd. (NASDAQ:BBRY) is claimed as a victim of the sequester. The Department of Defense reported that it will retire its 650,000 BlackBerry devices this year and will replace them with Apple Inc. (NASDAQ:AAPL) devices. In a statement, the DoD said, “Testing of the new (BB10) operating system has been gravely impacted by the sequester, and the outright elimination of funds earmarked for the BlackBerry 10 platform may never be restored.”

What are you thoughts on these news items as Research in Motion Ltd. (NASDAQ:BBRY) BB10 nears its U.S. launch date? Are you in the market for a new smartphone, and will you consider the new BB10? We’d appreciate your feedback in the comments section below.

DISCLOSURE: I own no positions in any stock mentioned.

Please see these related BBRY articles:

BlackBerry Spikes on Morgan Stanley Upgrade

Cell Phone Wars: Three is a Crowd

BlackBerry 10 Not Expected to Gain Much

Biotech Insider Alert - $6 Stock To Hit $40

$200 Million Dollar Healthcare Hedge Fund's #1 Best Idea Right Now

The best healthcare hedge fund out there right now is one of the largest shareholders in this biotech stock. The fund returned more than 20% in each of the last 2 years with a virtually fully hedged portfolio, and it's sending out a BUY signal on this biotech stock. Get your FREE REPORT today (retail value of $300)

This is a FREE report from Insider Monkey. Credit Card is NOT required.
Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The Oldest Money Managers

The Greatest Directors in the World

Largest Animals in the World

World’s Most Expensive Desserts

Best Selling Comic Books of All Time

A-list Actors who Sabotaged Their Career

Rappers With a College Degree

The Best Jazz Albums of all Time

The Most Influential Jazz Musicians

The World’s Most Famous Photographers

The Best Oscar-Winning Songs

Most Influential Choreographers Ever

Most Expensive Department Stores in the World

The Most Expensive Stolen Paintings in the World

The World’s Most Expensive Teas

Top Oscar Record Holders

The Most Expensive Flowers in the World

Countries With a Booming Film Industry

Most Expensive Cupcakes in the World

Uncommon European Escapes

The Most Stolen Artists in History

Best Travel Destinations in Australia

World’s Most Expensive Musical Instruments

World’s Most Famous Animals

Most Expensive Cakes in the World

Most Expensive Kosher Champagne in the World

Most Expensive Kosher Wine in the World

The Most Surprisingly Dark Fairy Tales

Most Popular Travel Destinations in Asia

The 10 Most Expensive Dresses Ever Worn to the Oscars

World’s Most Visited Art Museums

Best Countries for Photographers to Work in

Best Paid Jobs in the Film Industry

The Most Renowned Recovered Paintings Ever

Child Stars That Turned out Just Fine

Books That Were Banned in the Past Century

World’s Richest Dancers

Best Remedies against Bad Breath

Foods That Improve Your Skin Texture

Best-Selling Children’s Books of all Time

Foods That Boost Your Libido

Best-Selling Books of all Time

The Most Expensive Academy Awards Jewelry in History

Most Expensive Japanese Restaurant In New York City

The Best B-Boy Movies

Most Awesome Hip Hop Documentaries

Foods That Stain Your Teeth

Richest Doctors in the World

The Best Movie Sountracks Ever

The Highest Grossing Musicals on Broadway

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 129% in 2.5 years!! Wondering How?

Download a complete edition of our newsletter for free!