According to a new report BlackBerry has cuts smartphone production again as the market share of the company worldwide continues to decline. Jefferies analyst Peter Misek says the demand of new Q5 BlackBerry smartphone was very modest as it was launched in Canada last week.
The company in order to fulfill the loss gap needs to cut down the production of its Q10 and Z10 smartphones by half to 1 million units a month, said Peter Misek in a research note. “We believe the build plan cut indicates sell-through is tracking well below the Street’s $3.1-billion revenue estimate. Our Canada store checks indicate the Q5 launch is off to a slow start and Q10 prices have started to get cut.”
A U.K.-based Juniper Research says, the Canadian smartphone maker will remain a global player also in this year with more smartphone sales than the previous year. However, BlackBerry is continuously losing its market and more people are now getting attracted towards other brands.
Also, in Canada BlackBerry is losing its market share as more people prefer its competitors Apple and Samsung and other devices using Android over BlackBerry. The shipment of BlackBerry 10 has lowered down from 2.5 million to 2 million units a quarter.
“Even in traditional strongholds such as South Africa and Indonesia, competition is increasing as other Smartphone vendors attempt to seek out new growth areas,” said Michael Wiggins, author of the Juniper report released on Monday. “So although BlackBerry will continue to be a global player, being represented in most markets, they will experience a diminishing market share.”
However, according to the latest prediction by Juniper, the sale of a new BlackBerry smartphone will increase this year. BlackBerry is seeking strategic alternatives that will help it attract more buyers and increase the sale of the company. The company is also seeking to cut out its target prices to $15 (U.S.) from $18. Among analysts the average target will be $10.35, according to the latest data from Bloomberg.
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