BB10 shipments 800,000 below RBC forecast

RIM Ltd.'s BB10 first-quarter device shipments fell short of RBC's estimate by 800,000, RBC Capital Markets analyst Mark Sue said in a note to clients. RIM, operating as BlackBerry, reported first-quarter revenues that were short of market expectations and BB10 shipments that were 800,000 below RBC's forecast of 3.5 million, Sue said in the note issued June 28. Those numbers were also below a general consensus of three million BB10 shipments in the quarter, he said. “Competition remains intense and BlackBerry has a significantly diminished market presence with just 3% share, down from 20% at its peak,” Sue said. “BB10 is now available in nearly 150 countries around the world. However, carriers appear reluctant to stock inventory, pending stronger end user demand and sell-through.” Last week, Waterloo, Ont.-based BlackBerry reported total smartphone shipments of 6.8 million for its first quarter of 2014, representing a 13 per cent rise from the previous quarter. The company had an operating loss of $84 million US as its total subscriber base again fell, reaching 72 million from 76 million in the previous quarter. Sue wrote that the firm expects the release of the A10, a new five-inch touch-screen device, in the fall, and another one or two BB10 devices in the “following quarters.” RBC reduced its BB10 shipment forecast from 4 million to 2.7 million for the company's second quarter, the note said. Sue wrote that competitors are “attacking BlackBerry’s core markets” and attrition is taking place in Latin America, North America and Europe, the Middle East and Africa. “Investors need to see BB10 sell-through improve, stabilization of BlackBerry’s sub base and uptake of new enterprise and consumer services to become more comfortable with the story,” RBC said.

BB10 shipments 800,000 below RBC forecast

Brief | July 3, 2013

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