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RIM Loses Another Government Agency to the iPhone 5

Category: Mobile
Posted: 11:03AM

The National Transportation Safety Board has become the latest US government agency to make the move away from BlackBerry devices. The devices produced by tech giant Research In Motion (RIM) have been "failing both at inopportune times and at an unacceptable rate" according to the agency, who will be making the move to Apple's iPhone 5 in the near future. RIM had been hoping that the newly released BlackBerry OS 10 would draw back many of the firm's government customers, many of which have recently terminated their contacts with RIM. Despite this announcement, shares at RIM rose 1.2% yesterday, however the net change in RIM shares continue downward, with stocks dropping 33% since this time last year.

RIM have been suffering poor sales recently after losing many domestic customers to Apple's iOS-based iPhone 5 and many Android-based devices. An analyst from research firm Northern Securities highlighted the additional challenge RIM will face should it return to its former strength, due to the large number of customers expressing their dissatisfaction with the firm's products. RIM claims that the upcoming release of the BlackBerry 10 OS will help it to continue to meet the requirements of government organizations by providing secure, reliable mobile communication. However, it remains to be seen if RIM is able to pull this off based on the company's current situation.

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