The renewed distrust of analysts with BlackBerry has once again disturbed the upward momentum of its share price and on Thursday, April 11, the Canadian smartphone manufacturer’s stocks saw a big decline of more than 5 percent during trading hours. According to the update, this was the biggest fall in share price that BlackBerry has witnessed in the last two weeks. The main reason behind this huge decline was the poor start of sales for the BlackBerry Z10 smartphone in the U.S. Joseph Fersedi, who is an analyst at ITG Investment Research, stated in his research note on Thursday that, “The US launch of the Z10 started poorly and weakened significantly as the days passed.”
In fact some retailers in the U.S. have even claimed that customers are returning the BlackBerry Z10 in huge numbers and the main reason behind returning the device was that its interface is unintuitive. Some have even asserted that the returns are more than the number of sales, but so far no numbers have been revealed which can support the claim.
Another reason behind the bad start of the Z10 in the U.S. was the poor marketing from BlackBerry, as recent survey revealed that only 13 percent people in America were aware of the BB10 release in the country. Here is what the analyst from MKM Partners, Michael Genovese has said after seeing the survey:
“We were surprised that only 13% expect the BB10 to be available in the U.S. immediately or within the next 30 days. In fact the survey was administered between March 7th and April 2nd, 2013, which bracketed AT&T’s (March 22nd), T-Mobile’s (March 26th) and Verizon’s (March 28th) Z10 U.S. launches by about two weeks.
The ineffectiveness of BlackBerry’s marketing plan is highlighted by the 63% of respondents who were completely unsure as to when the BB10 would be released in the U.S. […] While the WP8 OS is gaining in popularity, a disturbing number of respondents (50%) who were aware that WP8 handsets were available for purchase couldn’t associate a handset brand to the OS.
In particular Nokia is lost in the shuffle, despite its early standing as a Microsoft partner. Only 19% of respondents are aware that Nokia has a Windows 8 phone, trailing Samsung at 26% and HTC at 21%.”
Due to this reason, analysts seem to have lost interest in BlackBerry and earlier most of them were claiming that the Waterloo-based company had “no line of sight to profitability.” Whereas, against all odds BlackBerry still managed to pull itself out of the loss by selling more than one million units of its latest all-touch handsets.
Now BlackBerry is looking to launch the Q10 in the U.S. next month.
Source: TechVibes, PhoneArena
Photo: TurboSquid
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