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BlackBerry Ltd (BBRY) Loses Naval War to Apple, Android

Blackberry ltd NASDAQ:BBRY

BlackBerry Ltd was the preferred phone of the Navy once, but now the organization is close to complete its transition to Apple and Android phones. The Navy said it expects the transition to get completed by the end of January 2016, says a report from Defense Systems.

Blackberry ltd NASDAQ:BBRY

Transition to iOS and Android

The transition covers around 20,000 current users in the continental US and Hawaii on the Navy-Marine Corps Intranet, and overseas on Navy Enterprise Network (ONE-Net). And, this capacity is on the rise.

The Navy said that after the permission to switch to Apple and Android devices, it allowed a change for 25,000 phone users in the continental US alone. The Navy revealed the transition for the first time in May.

The preference for Apple and Android enterprise servers, and the familiarity of the users with these two platforms, that dominate the mobile market, prompted the move away from BlackBerry. The transition covers only the shore-based govt. issued phones and not personal devices.

ONE-Net users outside the US, will get a mobile management system used by NMCI users. All the ONE-Net BlackBerry users will be able to move to Apple or Android by the end of January, the Navy said.

For now, the Navy is using BlackBerry Ltd for mobile devices at sea. But it plans to use BES for afloat systems, thus, allowing it use any OS be it Apple iOS, Android or BB10.

Will Priv be the last phone from BlackBerry?

BlackBerry’s below 1% market share, and declining popularity of its handsets, does indicate the end of the firms handset business. But to turn it around, the firm recently unveiled its new device, Priv. For the first time, the firm has made a device that runs Android. However, editor-in-chief of Mobilesyrup, Daniel Bader believes it could be their “final experiment. It has all the trappings of a last gasp.”

Bader sees Priv as an impressive device with “BlackBerry’s old beloved hardware…………. all the modern benefits of a high-end Android phone………….. and it has Android as an OS so it has all the apps that BB10 users just didn’t have.” The expert said the device will appeal to those interested in using the Android, but have been reluctant so far due to the security concerns.

BlackBerry Ltd CEO, John Chen has already said to exit to the handset business, if it’s not profitable. Bader believes hardware business is only profitable if sold in high volume. So it remains to be seen if the firm is able to hit the needed volume to keep the segment alive.

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Aman is MBA (Finance) with an experience on both marketing and Finance side. He has work as a Risk Analyst for AIR Worldwide, and is currently leading VeRa FinServ, a Financial Research firm. Favorite pastimes include watching science fiction movies, playing PC games and cricket.