Morgan Stanley holds back on BlackBerry Upgrade

Blackberry Stack

Morgan Stanley is holding off on upgrading its employees to BlackBerry's newest smartphones and operating system because of concerns that the Canadian company may not back its platform long-term, according to two people with knowledge of the bank’s plans.

Bloomberg reports that Morgan Stanley is holding off on upgrading its employees to BlackBerry's newest smartphones and operating system because of concerns that the Canadian company may not back its platform long-term, according to two people with knowledge of the bank’s plans.

Morgan Stanley would normally have a firm timeline for an upgrade by now, more than five months after the new phones were introduced, said one of the people, who asked not to be identified because the bank’s deliberations are private. The bank has chosen instead to keep using earlier models such as BlackBerry 7 devices, introduced in 2011, because it wants assurance of support for BlackBerry 10 now that the smartphone maker is considering strategic changes, the people said.

A BlackBerry board committee began exploring a sale of the company this month while also weighing partnerships to rescue it from a three-year sales slide that has slashed its market value by about 90%. That announcement spurred speculation that other corporate customers across industries will hold off moving up to BlackBerry 10, torpedoing an effort by Chief Executive Officer Thorsten Heins to spark a sales rally with a wave of corporate upgrades.

'If you think the company will be sold or disappears, why buy a couple hundred new devices? When something breaks, you might not get support', Roger Entner, an analyst at Recon Analytics, said in an interview. 'It’ll probably put a damper on purchases of BlackBerry devices'.

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Morgan Stanley Said to Hold Off on BlackBerry 10 Upgrade

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