Things seem a bit grim for BlackBerry, but did we really expect different? Despite the brief period of optimism, analysts are predicting big trouble for the company after a softer launch than anticipated.
“Forbes, Pacific Crest analyst James Faucette has released a research note this week estimating that BlackBerry Z10 shipments will total 275,000 to 325,000 units this quarter, significantly less than Wall Street expectations of 1 million units.”
“Canaccord Genuity analyst T. Michael Walkley had initially called for BlackBerry to sell about 1.75 million BlackBerry Z10 smartphones in the February quarter. But after his checks following the phone’s launch in the UK and Canada found limited initial supply and softer than expected demand, the analyst slashed his estimates for the current quarter from 1.75 million units to just 300,000.”
With modest sales and support from carriers, the Blackberry Z10 is about to face increasing competition with a host of new Android, Windows, and possibly a new iPhone in the next few months. To stay profitable, BlackBerry would have to triple or quadruple current shipment estimates at the least. With a weak consumer demand for high end BlackBerry smartphones and no line of sight for profitability, the future doesn’t look very promising.
It might take a couple of BlackBerry’s earning reports to determine how accurate all of these assessments are. But many might guess it’s time to simply throw in the towel.