US Department of Defense orders 80,000 BlackBerry phones
In the heat of its financial struggles, BlackBerry just got a breath of fresh air thanks to the US Department of Defense, which has placed an order for 80,000 smartphones. As part of its smartphone expansion strategy, the Department of Defense employees are receiving 1,800 undisclosed mobile devices including "Apple iPad 3 and iPad 4, iPhone 4S and iPhone 5, Samsung Galaxy Tab 10.1 tablets and Samsung Galaxy S3, and Motorola RAZR," the statement reads.
The news caused quite a stir in the stock market, as the company's stock shares peaked to $10 per share. In the end of last year BlackBerry shares were hovering around the $7 mark.
In spite of BlackBerry losing ground in the consumer market, the Canadian phonemaker has historically been the preferred partner for government agencies and security companies due to the smartphones' enhanced security features. In May last year, BlackBerry successfully certified the entire BlackBerry 10 family of devices to the Department of Defense security standards. This resulted in the Pentagon approving a contract for nearly half a million BB phones.
The news, however, isn't good enough to get the company out of the financial swamp it is currently in. The company is still on track with its plan to put the majority of its Canadian real estate in sale-leaseback. More than 3 million square feet of the company's commercial real estate is destined to be rented and sold in the future.