Report: Samsung developing mobile enterprise platform to compete with BlackBerry

BlackBerry stock drops 6 percent following brokerage's note to clients

Samsung is developing a mobile enterprise platform to challenge the BlackBerry Enterprise Server, according to a client note from brokerage firm Detwiler Fenton.

Samsung has been developing a mobile enterprise platform recently, even luring key engineers and managers away from BlackBerry (NASDAQ: BBRY), according to an article by Global News citing the Detwiler Fenton note.

"Our latest smartphone checks indicate that Samsung is making an aggressive push into the enterprise segment and it has BlackBerry's enterprise and SMB [small and medium-sized] business in its cross-hairs," the note observed.

Detwiler Fenton released the client note on Friday morning, and BlackBerry's stock dropped 6 percent to $14.15 at close of trading on Friday.

The brokerage firm expects Samsung to make a major announcement about the mobile enterprise platform at the upcoming Mobile World Conference in Barcelona, Spain.

"The reality is Samsung is not going to sit idle and let BlackBerry upgrade its existing enterprise and small business base to BB10. Samsung plans to increase its North American smartphone sales by 25 percent this year and it seems clear that enhancements to their SAFE [platform] and the enterprise system will play a key role in hitting that objective."

At the Consumer Electronics Show last month, Samsung said it was offering additional features for its SAFE enterprise security platform. These security features include Microsoft (NASDAQ: MSFT) Exchange ActiveSync for email, calendar and contacts; in-device AES 256-bit encryption for data security; VPN connectivity for secure access to corporate networks; and multivendor mobile device management support.

"We view these developments as a major event risk for BlackBerry, which adds to our negative view on the company and its efforts to turn its business around," Detwiler Fenton observed.

Not everyone is bearish on BlackBerry. "Lately, I can't understand not wanting to own BlackBerry (BBRY) at its current share price ($14). I think that it's an incredibly attractive and relatively safe investment, given its current valuation, stable emerging-markets and enterprise business, and significant upside potential from BB10," according to a Seeking Alpha blogger who goes by the handle New Century.

Certainly, a challenge from Samsung in the enterprise mobility platform space is not good news for BlackBerry. Yet, BlackBerry's more challenging problem is regaining market share in the consumer market, which is fueling the BYOD trend and enterprise support for mobile devices and operating systems.

For more:
- read the Global News article
- check out BlackBerry's stock price

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