RIM BlackBerry 7230 (Photo credit: Wikipedia)
BBRY : NASDAQ : US$15.63
BB : TSX
BlackBerry Ltd. is a designer, manufacturer and marketer of wire less solutions for the mobile communications market. Through development and integration of hardware, software and services, the company provides solutions for access to information including email, messaging, Internet and intranet-based applications
Canaccord says that its global surveys indicate mixed BlackBerry sell-through trends, with weakening sales of the Z10 over the past month but strong initial demand for the limited supply Q10.
Given the weaker Z10 sales levels combined with more limited initial supply of the Q10 than our expectations, we are lowering our BB10 selling
estimates for the May quarter from 3.3M to 2.8M units. While we anticipate stronger near-term results for BlackBerry as higher margin BB10 smartphones sell into the channel, we do not believe BlackBerry can achieve sell-through market share levels to return to sustained profit
levels. Therefore, we reiterate our SELL rating and $9 price target.
Given store surveys indicated slowing Z10 sales at Verizon, AT&T, and T-Mobile combined with lower supply levels of the Q10 with a physical keyboard than our expectations, we have reduced our May quarter BB10 smartphone shipment estimates from 3.3M units to 2.8M units.
With new BB10 smartphones facing increased high-end competition from the Samsung Galaxy S4 and the HTC One, we anticipate Z10 sales could further weaken in the consumer retail channels. However, we anticipate a strong ramp in Q10 sales over the next several months could more than offset the slower Z10 sales.
While we have lowered our BB10 estimates, we modestly lower our 2013 LPS estimates given our belief BlackBerry may temper nearterm
marketing plans until supply levels of the Q10 improve.
Given our lower BB10 estimates primarily from our lowered Z10 sales assumptions, we reduce our F2014 LPS estimate from ($0.37) to ($0.44). Our F2015 LPS estimate of ($0.75) remains unchanged.
Posted by jackbassteam on May 7, 2013
Research In Motion (BB : TSX : $13.99),
Research In Motion (BBRY : NASDAQ : US$13.78
Shares of BlackBerry slid Thursday following an ITG Investment Research report that said sales of the
Z10 smartphone are weak in the U.S.
The report said that in many cases, more people are returning the phone than keeping it and that overall demand remains week. A separate report from Detwiler Fenton said, “In several cases, returns are now exceeding sales, a phenomenon we have never seen before,” with many returning it because they find the interface unintuitive.
The Z10 (and soon to be launched Q10) are seen by many as BlackBerry’s last chance to return to prominence as a relevant smartphone manufacturer. Canaccord Genuity Technology Analyst Michael Walkley believes BlackBerry’s hardware business will struggle to return to profitability given increasing smartphone competition, and he struggles to assign any value to the hardware business given his belief that an acquirer of BlackBerry would likely attempt to transition BlackBerry’s subscriber base to their own competing smartphone products or ecosystem. While BlackBerry has roughly $2.9B in cash, he assigns zero value to BlackBerry’s cash in his sum-of-parts analysis because he believes BlackBerry’s core business will struggle to break even, and he anticipates BlackBerry’s cash balance will decline over the next several quarters as the company spends on advertising and working capital to launch its BlackBerry 10 platform. Late Thursday, BlackBerry said claims of high Z10
Broken Blackberry (Photo credit: MattHurst)
returns are “absolutely false.”
Posted by jackbassteam on April 12, 2013
BlackBerry Jam Asia 2012 (Photo credit: isriya)
BBRY : NASDAQ : US$14.15
BB : TSX
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. Our follow-up checks have indicated steady but modest sales levels.
With new BB10 smartphones launching in the U.S. only in mid-March or later at subsidized prices no better than competing high-end Apple/Samsung smartphones, combined with our expectations for the Galaxy S IV to launch at a similar time frame in the US market, we are lowering our BB10 sales estimates for the February quarter and all of F2014.
We reiterate our SELL rating and $9 price target
Given our store surveys indicated modest Z10 sales into the channel in the U.K. and Canada, we have reduced our February quarter BB10 smartphone shipment estimates from 1.75M units to 300K units.
Further, we believe carrier support for BlackBerry 10 in the U.S. is modest, as demonstrated by Sprint only planning to launch the Q10 and T-Mobile only the Z10. Further, we anticipate carriers will not build large inventory levels for BB10, consistent with prior BB7 high-end launches, and will initially stock modest levels given the weaker consumer demand for high-end BlackBerry smartphones.
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.
We reduce our F2013/14 EPS estimate from ($1.10)/($0.48) to ($1.18)/($0.62) and introduce our F2015 estimate of ($1.03). Valuation: Our $9 price target is based on sum-of-parts analysis .
Posted by jackbassteam on February 20, 2013