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BlackBerry (BBRY) No Longer 'Third Choice' Mobile OS for Businesses (AAPL) (NOK)

July 3, 2013 8:18 AM EDT
"Who-Berry?"

That's what most consumers say when you ask if they use a BlackBerry (Nasdaq: BBRY) device. And that reaction isn't a good thing for the venerable maker of Curve and BB10 handsets.

Corporations, who have long yearned for an alternative to Apple (Nasdaq: AAPL) iOS and Google (Nasdaq: GOOG) Android, continue dropping support for BlackBerry as more and more of its employees flock to touchscreen devices from the likes of Samsung, HTC, Huawei, and others. The Bloomberg-compiled data comes from people that make software for businesses to manage smartphones while at work.

Not helping What-Berry BlackBerry is results last week showing a surprising miss on BB10 activations in the quarter. Though analysts were expecting over 3 million BB10 shipments, the number came in at about 2.7 million.

The lack of demand has caused many corporations to discontinue BlackBerry Enterprise Server (BES), which is a back-office feature that allows employees to synchronize email and appointments via the corporate network. BlackBerry without BES lacks many of the features that made its a go-to with IT departments for years. The company launched Secure Work Space, which supports iOS and other platforms, but it almost seems too little, too late as corporations continue to tap third-party software makers for collaboration and security needs.

MobileInc.'s BobTinker commented to Bloomberg, "“Most of our customers have been planning to support three mobile operating systems -- iOS, Android and either Windows Phone or BlackBerry. The recent results indicate that BlackBerry is not going to be the third."

So, at least there's a "Windows" of opportunity for Microsoft (Nasdaq: MSFT) and partner Nokia (NYSE: NOK) in the enterprise segment. Given Microsoft's software dominance, it would be expected that many corporations would see Windows Phone 8 as the best third-choice for employees.

Shares of BlackBerry are flat in early trading after falling 33 percent the last three sessions.


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