Estimate of BlackBerry sales slashed
TORONTO—Canaccord Genuity is slashing its estimate of BlackBerry BB10 smartphone shipments in February to just 300,000 units—a far cry from its earlier estimate of more than 1.75 million.
The equities research unit of Canaccord Financial Inc. said today that its global surveys show initial sales have been mixed for the BlackBerry Z10, with limited supply rather than overwhelming demand behind post-launch shortages at some stores.
“We anticipate carriers will not build large inventory levels for BB10, consistent with prior BB7 high-end launches, and will initially stock modest levels given the weaker consumer demand for high-end BlackBerry smartphones,” he added.
Meanwhile, the delay of the phone’s launch in the American market until mid-March or later—combined with expectations for the Galaxy S4 to launch in the U.S. around the same time—has lowered sales expectations for not only the February quarter but also the rest of the fiscal year, Canaccord said.
Canaccord reiterated its sell rating and a price target of $9 for BlackBerry stock, though other analysts recently upgraded their expectations for the smartphone maker.
Earlier this month, Citigroup increased its expectations for shares to an “outperform” at $19.50 while Jefferies is maintaining its “buy” rating of $19.50.
Bernstein Research has upgraded the company to “outperform” with a target price of $22—an increase from $12.