Advertisement

HindustanTimes Sat,19 Apr 2014

BlackBerry shares hit by Pacific Crest report

Reuters  Toronto, May 08, 2013
First Published: 10:46 IST(8/5/2013) | Last Updated: 10:48 IST(8/5/2013)

Shares of BlackBerry slid more than 5 percent on Tuesday after Pacific Crest Securities issued a downbeat report on sales momentum for smartphones running the company's new BlackBerry 10 operating system.

Advertisement


Pacific Crest analyst James Faucette, who has a underperform rating on the company's stock, said he believes initial shipment and sales volumes for the BlackBerry Q10 - a device that comes with a physical keyboard - have not been strong.

Faucette said sales of the BlackBerry Z10 - a full touchscreen device also powered by the new BB10 operating system - are slowing down as well.

"We believe the production levels of 1.5 million to 2 million units per month are well in excess of the sell-through," Faucette said in a note to clients on Tuesday, adding that the company is likely going to be forced to cut production levels.

The Pacific Crest report comes less than a week after Jefferies analyst Peter Misek said sales of the Q10 were strong in both Canada and Britain - the two countries in which the device has been launched.

BlackBerry's volatile shares were down 5 percent at $14.80 in afternoon trading on the Nasdaq, while its Toronto-listed stock was down 5.5 percent at C$14.88.

Advertisement
more from Business

700 trainees opt for exit plan at Nokia’s Chennai plant

Finnish handset maker Nokia, struggling to shepherd its Chennai plant into its agreement to be bought by US software giant Microsoft amid tax disputes in India, has got some success with 736 of its trainees accepting the voluntary separation scheme.
markets
Advertisement
Most Popular
Advertisement
Copyright © 2014 HT Media Limited. All Rights Reserved