Share

BlackBerry shares lifted by Pentagon contract

New York - BlackBerry shares leapt more than nine percent Tuesday as the troubled Canadian smartphone maker got a boost from news of contract to supply the US military with 80 000 new handsets.

The stock gained 9.36% to end at $9.93, capping a rally of some 30% so far in 2014 and more than 60% from its lows last month, when the company reported a quarterly loss of more than $4bn.

The latest gains came after last week's announcement from the Pentagon that it will include some 80,000 BlackBerry phones as part of a new "mobility" program for the Defense Department, which also includes devices made by Apple, Samsung and Motorola.

BlackBerry shares started a rebound last month after it announced plans to outsource its handset production to Taiwan-based Foxconn, which according to analysts could help the Canadian firm concentrate on software and services and avoid many of the risks of the volatile smartphone segment.

Last year, the company said it was considering a sale or other strategic move, but later scrapped those plans and told customers it was staying in the smartphone business.

BlackBerry helped create a culture of mobile users glued to smartphones, but lost its luster as many moved to iPhones or devices using Google's Android software.

It still has some 70 million subscribers worldwide, but most of these are using older handsets, with newer devices on the BlackBerry 10 platform unveiled a year ago failing to gain traction.


We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.92
-0.1%
Rand - Pound
23.89
-0.0%
Rand - Euro
20.44
+0.1%
Rand - Aus dollar
12.35
+0.0%
Rand - Yen
0.13
-0.1%
Platinum
909.30
+1.4%
Palladium
1,015.00
+1.3%
Gold
2,221.01
+1.2%
Silver
24.85
+0.8%
Brent Crude
86.09
-0.2%
Top 40
68,346
+1.0%
All Share
74,536
+0.9%
Resource 10
57,251
+2.9%
Industrial 25
103,936
+0.6%
Financial 15
16,502
-0.1%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders