BlackBerry (BBRY) Hits Snag as U.K. Gov't Says BB10 'Not Secure Enough'
BlackBerry (Nasdaq: BBRY) may lose a stronghold in one of its key operating markets following the release of BB10.
According to U.K.'s The Guardian, the UK's Communications-Electronics Security Group (CESG) rejected usage of BB10 under conditions that the operating system wasn't secure enough for essential work.
No time frame was given by BlackBerry on plans for resubmission of BB10, though the company commented to The Guardian, "We are continuing to work closely with CESG on the approval of BlackBerry 10 and we're confident that BlackBerry 10 will only strengthen our position as the mobile solution of choice for the UK government."
News comes as BlackBerry is hoping to win and retain more government and corporate contracts, with the onset of pressure from Apple (Nasdaq: AAPL) and devices running Google (Nasdaq: GOOG) Android becoming even more evident.
With BB10 and BlackBerry Balance, the CESG noted that there was a lack of security tied to the copying of data between work and personal accounts.
Some analysts have suggested that sales of BlackBerry's Z10 touchscreen smartphone has slowed from initial launch in February. Pacific Crest's James Faucette, who has a Sell rating on the Company, recently said that sales expectations on the Street might be vastly higher then what his checks indicated. The Z10 will begin selling in the U.S. this Friday, with preorders having started last week.
Following an upgrade from Morgan Stanley earlier, BlackBerry looks to start in positive territory Wednesday.
According to U.K.'s The Guardian, the UK's Communications-Electronics Security Group (CESG) rejected usage of BB10 under conditions that the operating system wasn't secure enough for essential work.
No time frame was given by BlackBerry on plans for resubmission of BB10, though the company commented to The Guardian, "We are continuing to work closely with CESG on the approval of BlackBerry 10 and we're confident that BlackBerry 10 will only strengthen our position as the mobile solution of choice for the UK government."
News comes as BlackBerry is hoping to win and retain more government and corporate contracts, with the onset of pressure from Apple (Nasdaq: AAPL) and devices running Google (Nasdaq: GOOG) Android becoming even more evident.
With BB10 and BlackBerry Balance, the CESG noted that there was a lack of security tied to the copying of data between work and personal accounts.
Some analysts have suggested that sales of BlackBerry's Z10 touchscreen smartphone has slowed from initial launch in February. Pacific Crest's James Faucette, who has a Sell rating on the Company, recently said that sales expectations on the Street might be vastly higher then what his checks indicated. The Z10 will begin selling in the U.S. this Friday, with preorders having started last week.
Following an upgrade from Morgan Stanley earlier, BlackBerry looks to start in positive territory Wednesday.