Wednesday 6 February 2013

BlackBerry sees mixed views of Z10 launch

Analysts differ on early data from U.K. and Canada; Q10 likely later

By Dan Gallagher, MarketWatch
SAN FRANCISCO (MarketWatch) — BlackBerry Inc. is reportedly showing early signs of strong demand for its new Z10 smartphone, though analysts on Wednesday issued a mix of reactions on the launch of the device in the U.K. and Canadian markets.

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BlackBerry has launched the Z10 smartphone in the U.K. and Canada. Analysts are mixed on early signs of demand.
BlackBerry BBRY +0.06%   CA:BB +0.38%  , formerly known under the name Research In Motion, saw its shares fall, then rise, in early trades on Wednesday. The stock was up 2% to $16.35 in morning trade.
In another development, the company indicated that the U.S. launch of its Q10 device — which will feature a physical QWERTY keypad — may be later than previously expected.
In an interview with the Associated Press, BlackBerry CEO Thorsten Heins said the Q10 would likely come to market eight-to-ten weeks after the launch of the touchscreen Z10. Since the Z10 is currently expected to launch in the U.S. sometime in March, that would imply a launch window of May-June for the Q10. Previous expectations had the smartphone hitting the U.S. market sometime in April. 

“We’re trying to get it as close as we can,” Heins told the AP.
BlackBerry launched the Z10 in the U.K. last week, one day after officially unveiling the device. The company gave the Z10 an additional splash of publicity with a high-profile Super Bowl ad campaign over the weekend. Read: RIM unveils new BlackBerry 10 smartphones
Several analysts have noted early stock-outs at U.K. retailers for the device, indicating strong initial demand. But some question the initial supply levels for the product.
“Our U.K. store surveys post the recent launch of the Z10 smartphone indicated solid initial sales,” wrote Mike Walkley of Canaccord Genuity in a note to clients on Wednesday. “However, limited initial supply was cited as the reason for early post-launch stock-outs at some carrier stores versus overwhelming demand.”
James Faucette of Pacific Crest, who carries an underperform rating on the stock, wrote in his note Wednesday that BlackBerry “seems to be following a strategy of deliberate scarcity for the Z10, similar to what other manufacturers have done in recent high-profile launches.”
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Faucette made the comparison to other high-profile launches like the slide-out BlackBerry Torch and Nokia NOK +2.09%   Lumia 800. “In those cases, there was excess inventory by the end of the first full quarter of shipments.”
Peter Misek of Jefferies & Co. wrote Tuesday that the U.K. launch “could provide some relief as many thought that the Z10 was not a viable product.” He keeps a buy rating on the stock, noting that “we do not think the Street is incorporating the high carrier support into estimates.”
The Z10 also launched in the Canadian market on Tuesday. Mark Sue of RBC Capital said his checks indicate “sell-through of the BlackBerry Z10 smartphone is strong on its launch day, with numerous stores selling out towards the end of the day.”
He also added that enterprise customers “are getting many requests for upgrades” to the new device, adding that those customers still have to run through their own test and certification processes.
Dan Gallagher is MarketWatch's technology editor, based in San Francisco. Follow him on Twitter @MWDanGallagher.
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