BlackBerry Loses Another Big Customer to Apple

BlackBerry (NASDAQ: BBRY  ) has received the technological boot from Home Depot. The company will no longer be utilizing BlackBerry OS, which is going to be replaced with Apple's (NASDAQ: AAPL  ) iOS. Store managers and all corporate-level employees have already begun the process of switching over to the iPhone 4S. Across the company, this opportunity is worth around 10,000 phones for Apple. This is yet another blow against BlackBerry, which is currently in the process of launching BlackBerry 10, a more modernized ecosystem aimed at more effectively competing against the likes of iOS and Google Android. Apparently, business must go on with or without BlackBerry on board.

Bad beats
This isn't the first time BlackBerry has lost a high-profile customer to Apple. Back in November, the U.S. National Transportation Safety Board announced plans to move 400 users to Apple's iPhone 5, citing that BlackBerrys have been failing at an unacceptable rate. In September 2012, Immigration and Customs Enforcement ditched over 17,600 BlackBerry devices for iPhones because BlackBerry no longer met the mobile technology needs of the agency. Last May, the Transportation Security Administration announced a plan to spend $3 million on Apple products, rather than buy more BlackBerry and Microsoft products.

Perhaps the biggest kahuna of them all was when the Defense Department Information Systems Agency took BlackBerry off its planned mobile device purchases, which at first involves over 162,000 devices (including the iPhone) and has the potential to grow to 8 million devices. At the expense of BlackBerry, Apple has been slowly but surely making serious inroads in the enterprise space.

Tried and true
Enterprises are like glaciers in the sense that they're very slow moving when it comes to implementing new technologies. Before a new technology gets implemented, it first needs to prove its worth in the marketplace with evidence of widespread adoption. During Apple's most recent conference call, CEO Tim Cook announced that "well over" half a billion iOS devices have been sold. This large saturation gives enterprises the confidence that the iOS ecosystem will continue to be supported for the years ahead. As a technology investment, there's a higher degree of risk and uncertainty surrounding deploying a new BlackBerry 10 outfit. In this context, it's probably going to take years for enterprises to regain confidence in BlackBerry's future.

Apple halo effect?
According to Tim Cook, Apple has a great ability to create a haloeffect around its products, which ultimately leads to further Apple purchases in the future. In the enterprise space, I'm left wondering if Apple will experience the same halo effect, where companies like Home Depot start with an iPhone deployment, leading to subsequent iPad purchases and perhaps even some Mac sales.  In terms of BlackBerry, it's likely that this development would cause the company to have continued difficulty finding traction in the enterprise segment.

There is a debate raging as to whether Apple remains a buy. The Motley Fool's senior technology analyst and managing bureau chief, Eric Bleeker, is prepared to fill you in on both reasons to buy and reasons to sell Apple, and what opportunities are left for the company (and your portfolio) going forward. To get instant access to his latest thinking on Apple, simply click here now.


Read/Post Comments (39) | Recommend This Article (5)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On February 11, 2013, at 7:38 PM, voytekp wrote:

    how many times are you guys going to run the same story in one day!!!????!?!?!?!!??!!?

    Pathetic

  • Report this Comment On February 11, 2013, at 7:39 PM, eidsonb wrote:

    No mention that ICE and the other Gubment agencies have put those decisions on hold and are evaluating BB10....

    Also this is OLD news and has been reported on this site at least 20 times today. THD decided MONTHS ago to go with the iToy well before the BB10 Launch, Months and it was well known. Why all you who are shorting the stock are picking this up now is just foolish. Pun intended.

  • Report this Comment On February 11, 2013, at 7:42 PM, ashrafkusa wrote:

    It seems that every fool article favor Apple over BlackBerry and that is not fair.

    Why didn't you mention that Black Berry Sales wasvery strong today in UAE and sales .

    Your article is old news about Home Depot and their is no need to keep repeating that news unless it is helping your shorts buddies.or May Apple ????

  • Report this Comment On February 11, 2013, at 7:45 PM, ashrafkusa wrote:

    Misinformation. Home Depot chose Iphone 4s over BB7. Nothing related to Z10 and the new RIMM. Lost revenu 4 rimm

  • Report this Comment On February 11, 2013, at 7:52 PM, ashrafkusa wrote:

    DUBAI - Thousands of new BlackBerry devices have been booked in advance since January 31 and the company, its distributors, telecom operators and retailers are ready to see fantastic response when the next-generation device with a new operating system hits shelves across the UAE today.

    The UAE will be the third market globally where the device will be available in retail stores. The Canadian company claimed a historic record response in the first two markets; customers in the UK experienced the device first on January 31, a day after the launch. At its home market, it was unveiled on February 5.

    “In Canada, February 5 was the best day ever for the first day of a launch of a new BlackBerry smartphone. In fact, it was more than 50 per cent better than any other launch day in our history in Canada,” BlackBerry president and chief executive officer Thorsten Heins said in a statement, posted on the company’s website. “In the UK, we have seen close to three times our best performance ever for the first week of sales for a BlackBerry smartphone.”

    The same experience is expected in the UAE as thousands of devices have been ordered since pre-booking started from January 31 by telecom operators, its distributors and some of the top retailers.

    Telecom operators etisalat and du opened new windows on their websites for pre-bookings in the UAE. They did not respond to Khaleej Times’ queries regarding the BlackBerry launch. Etisalat on its website offers four different packages ranging from Dh49 to Dh299 for the new BlackBerry. “The new BlackBerry Z10 will be available to pre-paid as well as post-paid customers on BlackBerry Complete, BlackBerry Unlimited and BlackBerry New Global packages,” it said.

    Axiom Telecom, one of the distributors in the UAE for BlackBerry, said: “Levels of anticipation hit new levels when we announced that we were taking pre-bookings from January 31 and, following BlackBerry’s launch event, the Z10 order floodgates truly opened. All signs point to this being one of the year’s best-sellers.”

    “We have had one of the best ever pre-booking campaigns. Already we have thousands of orders on the books,” Axiom Telecom chief executive officer Faisal Al Bannai told Khaleej Times.

    “One of the reasons is that Axiom continues to maintain its position as the go-to destination for BlackBerry in the region by offering a range of benefits like exclusive accessory packs, special prices for those trading in their BlackBerry 9900 devices, free regional warranty and the Mena’s only one-hour repair service,” he added.

    Axiom expects the device to do extremely well with both existing BlackBerry users looking to upgrade and newcomers, Al Bannai said, adding: “BlackBerry has done a wonderful job with the new OS, introducing many unique features. The market is abuzz with Z10 anticipation and this will definitely strengthen BlackBerry’s market share.”

  • Report this Comment On February 11, 2013, at 7:54 PM, ashrafkusa wrote:

    Launch of BlackBerry Z10 outperforms expectations

    (Staff Report) / 12 February 2013

    DUBAI - Etisalat has launched BlackBerry’s flagship Z10 smartphone witnessed record sales and customer turnout at its business centres on Sunday.

    Etisalat was the first operator in the UAE to offer the new device, which was available for pre-orders on www.etisalat.ae/blackberry to pre-paid as well as postpaid customers in BlackBerry Complete, BlackBerry Unlimited and BlackBerry Global packages.

    Etisalat is running a BlackBerry Unlimited package special offer on the Z10 offering a discount of 50 per cent on rental for the first four months of purchase.

    In addition, the BlackBerry Unlimited package, that was originally priced at Dh185 per month is now priced at Dh93, offering faster internet speeds and access to up to 10 email accounts in addition to social networking apps, and regular features such as BlackBerry App World downloads. The other packages will be available at Dh79 for BlackBerry Complete customers and Dh299 for users on the BlackBerry Global package.

  • Report this Comment On February 11, 2013, at 7:58 PM, sonbuster wrote:

    "As per the buzz about Home Depot's decision to offer 10,000 iPhones to the company's executives, Amy McDowell of BlackBerry in an email replied:

    'We have over 2,700 unique businesses in North America already registered for our BlackBerry 10 Ready Program. We are confident that BlackBerry is, and will continue to be, the best solution for corporations managing large smartphone deployments.'

    I second that. "

    http://seekingalpha.com/article/1173291-another-positive-cat...

  • Report this Comment On February 11, 2013, at 7:59 PM, ashrafkusa wrote:

    $BBRY rebuttal to HD: We have over 2,700 unique businesses in North America already registered for our BlackBerry 10 Ready Program.

  • Report this Comment On February 11, 2013, at 8:07 PM, TimmyBee123 wrote:

    Their switching to a two year old Apple phone indicates they are not going after top end phones.

    Ever think of that?

  • Report this Comment On February 11, 2013, at 8:07 PM, CZZZZZZ wrote:

    Another day at The Fool:

    Editor: what do you have for me today?

    Journalist: Remarkable sales reports coming out of UAE as BB10 sold out quickly, that make's it 3/3 for countires BB10 is in.

    Editor: how about the Home Depot decision that was tabled months ago to buy some 2 year old iPhone's Apple is unloading?

    Journalist: sure thing, that's a much better story

    Editor: Glad to hear you agree. Anything to make Amercian investors forgot about international sales should help my Short on BBRY and tanking APPL.

    Journalist: great idea boss, you da man !

  • Report this Comment On February 11, 2013, at 8:09 PM, applefan1 wrote:

    It's called MILKING. common term used by various industries.

  • Report this Comment On February 11, 2013, at 8:13 PM, ashrafkusa wrote:

    You Fools need to be Fair with BlackBerry and stop helping the shorts hedges fund to steal hard working people money.All what you had today is nothing but repeating the Home depot story .

    Are you in kahoot with Apple????

  • Report this Comment On February 11, 2013, at 8:15 PM, NOTvuffett wrote:

    blackberry only needs to capture a small percentage of the market to be successful.

  • Report this Comment On February 11, 2013, at 8:15 PM, MrZ2357 wrote:

    Holly cow.

    Nice informative comments.

    Did not know that UAE launch was wildly successful.

  • Report this Comment On February 11, 2013, at 8:21 PM, ashrafkusa wrote:

    Launch of BlackBerry Z10 outperforms expectations

    But The Fools never and will never mention it because it is a good news for Blackberry.

    But they just keep repeating the old Home Depot song.

  • Report this Comment On February 11, 2013, at 8:27 PM, raulia wrote:

    This is really a shamefull act by fool and forbes,All Americans can do that they can only punish person from third world.Their on citizens are in naked corruption and scaming with article.Where is Obama?

  • Report this Comment On February 11, 2013, at 8:30 PM, ashrafkusa wrote:

    Apple is facing big problem.Updated Vodafone has urged iPhone 4S owners to not upgrade to iOS 6.1, the latest available, because it believes the software jams 3G and phone connections.

    Vodafone claimed that the bug is Apple's fault and that it affects Voda's rivals as well as its own UK network, although it only named Three Austria* as another impacted telco. The warning comes amid reports that iOS 6.1 overwhelms Microsoft Exchange servers and is apparently crippling some corporate networks.

    In emails and texts to customers, and a forum post here, Vodafone told iPhone 4S fanbois to skip version 6.1 of Apple's mobile operating system until the Cupertino giant fixes the connectivity performance bug.

    In a statement that branded the flaw an "iOS software fault", Voda squarely laid the blame on Apple. The telco described the nature of the problem for affected users thus:

    We're aware of an issue caused by Apple iPhone 4S handsets that have been upgraded to iOS 6.1 which impacts performance on 3G. Some customers may occasionally experience difficulty in connecting to the network to make or receive calls or texts or to connect to the internet. These connection problems are intermittent.

    The problem is exacerbated if "a significant number" of iPhone 4Ss running 6.1 are in the same area of the mobile network, an email from Vodafone sent to corporate customers and seen by The Register confirmed - and all phone users are affected by the fruity overload:

    If there is a significant number of iPhone 4S handsets connecting to the network in a specific area, this can cause congestion issues for those users as well as the users of other handsets in that area.

    Vodafone UK told The Reg that the problem was not specific to its network. However, O2 has reported no problems. EE (which operates the T-mobile and Orange brands in Blighty) told El Reg it is investigating but could not say whether or not there is a problem with its network. Three UK said it had no problems and could not comment on Three Austria.

    When pressed on the technical cause of the overload, Voda's spokeswoman simply said "you'll have to ask Apple about that". Apple has not replied to a request for comment - indeed, it won't even talk to the BBC on this issue. ®

  • Report this Comment On February 11, 2013, at 8:31 PM, NOTvuffett wrote:

    when they have the new OS, and they have the physical keyboard, I will buy one.

  • Report this Comment On February 11, 2013, at 9:01 PM, rickrrbyw wrote:

    i really hate this article. Home Depot is very smskl company in the world. it doesn't matter even 10same size company leave. only not manyAmerican know Home Depot. there are msny building stores like Lows. white cap. ...... home depot is much smaller than Walmart...

  • Report this Comment On February 11, 2013, at 9:19 PM, coollarry wrote:

    Why so excited? HD took a fire sale to buy these obsolete iPhones at next to nothing. UAE are the guys with a deep pocket and they love BB10.

    Fool, Forbes, Street the so called US media love to bash BB and push Apple. Obvious conflict of interest. This is why they never report any positive news of BB, such as huge success in UAE BB launch. I wonder who is listening to these jokers and fools.

  • Report this Comment On February 11, 2013, at 9:21 PM, dd27 wrote:

    I really think TMFool should stop trying to remind readers they were once referred to as "an oasis " of eithical standards in finacial reporting -- that truly was ONCE UPON A TIME.

    Now you are blindly one sided -- no attempt whatsoever made to report on the innovative and unique features of the new BBZ10, constant repetition of negative BB news without balancing that with positive new (of which there is plenty) and total lack of professional standards.

    SHAME ON YOU ALL. Gardener brothers -- why are you silent?

  • Report this Comment On February 11, 2013, at 9:23 PM, TMFTopDown wrote:

    rickrrbyw -- Actually, Home Depot is the sixth largest retailer in the world:

    http://www.stores.org/2012/Top-100-Retailers#.URmm56VJOAg

    And for the record, there is no scamming, we have a transparent disclosure policy and a statement attached to all of our articles. For more info, you can read about it here:

    http://www.fool.com/Legal/fool-disclosure-policy.aspx

    I appreciate the comments. Part of what makes us better investors is the the option for open dialogue.

    -- Steve Heller (TMFTopDown)

  • Report this Comment On February 11, 2013, at 9:44 PM, gettmoney wrote:

    once a fool always a fool...lol....old story lets move on ...ohh LONG BBRY...

  • Report this Comment On February 11, 2013, at 9:49 PM, NOTvuffett wrote:

    ok, this is not here or there, but do any of you guys like old cars?

  • Report this Comment On February 11, 2013, at 10:05 PM, crowbait51 wrote:

    Why not this headline?

    Dumb US firm chooses 2 year old Apple phones to replace 5 year old BlackBerrys. Ignores current offerings from both suppliers and global movement to BYOD.

    That's what the real story is here.

  • Report this Comment On February 11, 2013, at 10:12 PM, eidsonb wrote:

    Hey Info....late to the party....

  • Report this Comment On February 12, 2013, at 12:10 AM, claudikorn wrote:

    Its more and more obvious. Motley Fool isnt that independent stock advisor. They are the messenger boy for big parties which shorted BB. Subscribers should keep that in mind.

  • Report this Comment On February 12, 2013, at 12:18 AM, claudikorn wrote:

    Another proof MF does play strange games. Take a look at LVLT. They keep on bashing the stock and when you look at their 13F they own the stock!!

  • Report this Comment On February 12, 2013, at 12:39 AM, sammycooool wrote:

    10,000 Home Stupot employees, " Hey, I got my 2-year old iCrapple phone today!!!". Yeah, right.

  • Report this Comment On February 12, 2013, at 3:23 AM, giuseppe844 wrote:

    That contract means nothing and find some new "dirt" on blackberry because I know that's all your trying to do as most sites do the same. And that is only a 10,000 unit contract. It was estimated when it opened in dubai they were to sell 30,000 units in the first week. Yes they did loose that contract now but wait till those 10,000 people use the iphone and will be begging for the blackberry. It is the best phone out there for buisness just now they finally have increased their operating system to the same level as all the other phones out there. Also why not talk about some of the positive aspects towards blackberry. That they will be coming out with 6 new devises including the Q and Z 10.

  • Report this Comment On February 12, 2013, at 3:24 AM, giuseppe844 wrote:

    That contract means nothing and find some new "dirt" on blackberry because I know that's all your trying to do as most sites do the same. And that is only a 10,000 unit contract. It was estimated when it opened in dubai they were to sell 30,000 units in the first week. Yes they did loose that contract now but wait till those 10,000 people use the iphone and will be begging for the blackberry. It is the best phone out there for buisness just now they finally have increased their operating system to the same level as all the other phones out there. Also why not talk about some of the positive aspects towards blackberry. That they will be coming out with 6 new devises including the Q and Z 10.

  • Report this Comment On February 12, 2013, at 7:44 AM, jdmeck wrote:

    As I said before,"It does not matter how good their new system is. It's too little too late. Corporate America is tired of waiting and will not go back."

  • Report this Comment On February 12, 2013, at 7:47 AM, tonyrenier wrote:

    How many times will this story be reposted there are not 8-10 Home Depots! I have never seen a post on CIS NOT going ahead with Apple and staying with BlackBerry.

    Even if you are JUST a blogger, you get your incorrect headline on Yahoo Finance where everyone can see it. I guess that's the point.

  • Report this Comment On February 12, 2013, at 8:22 AM, mirra88888 wrote:

    Iphone 4 costs nothing so they are trying to cut cost.

  • Report this Comment On February 12, 2013, at 8:28 AM, mirra88888 wrote:

    People soon realize that a consumer will not buy things from a corporation that ignores security and buys iphone because it is more game friendly.

  • Report this Comment On February 12, 2013, at 1:02 PM, nonbiasfool wrote:

    An non-bias story would have included that BBRY currently has over 2,700 unique businesses in North America already registered for the BlackBerry 10 Ready Program.

    Was the goal here to run a negative story that does not look at both sides of the argument, thereby helping various people at the "Fool" with their BBRY short position?

  • Report this Comment On February 12, 2013, at 2:43 PM, OracleofOmahaha wrote:

    All of these fools getting so sensitive to any negative articles and trying to pump up their Crapberry stock.

  • Report this Comment On February 12, 2013, at 6:26 PM, digitally404 wrote:

    Real question is , why.

  • Report this Comment On February 12, 2013, at 7:57 PM, OracleofOmahaha wrote:

    Home Depot may not believe that Blackberry is going to survive. Home Depot should not be criticized for making that management decison.

Add your comment.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2248340, ~/Articles/ArticleHandler.aspx, 10/22/2014 5:59:19 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement