According to analysts Cannacord Genuity and Pacific Crest, earlier sales estimates were up to 1.75 million handsets, but due to poor launch sales BlackBerry Z10 leaves the company at risk of incurring a fifth quarter of losses in a row.
“Our global surveys post the recent BlackBerry Z10 launch indicated mixed initial sales with limited initial supply cited as the reason for early post-launch stock-outs at some carrier stores rather than overwhelming demand,” said Canaccord Genuity. “Our follow-up checks have indicated steady but modest sales levels.”
Due to the BlackBerry Z10 only launching in the US in mid-march at the earliest and having increased competition from new handsets like the upcoming Samsung Galaxy S4, analysts are suggesting that there will be continually weaker consumer demand for BlackBerry 10 handsets.
“With our expectations BB10 smartphones will face increasing competition from a host of new Android and Windows smartphones and potentially a new iPhone in 1H/C2013, we anticipate global carrier partners will order cautious initial BB10 inventory levels, leading us to lower our Feb. quarter and F2014 BB10 estimates,” added Canaccord Genuity.
The BlackBerry 10 OS launch was tipped to be the make-or-break event for the struggling company, following a rather disastrous eighteen months including dwindling earnings, staff redundancies, a declining user base and a history of service problems.
“We continue to believe the Z10 launch involves relatively small shipment volumes and only moderate sell-through so far in markets which have historically been some of BlackBerry’s strongest,” said Pacific Crest. “As a result, investor optimism that the BB10 could reverse the company’s trajectory appears to be well overdone at current levels, in our view.”
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