After a long wait, BlackBerry's latest smartphone finally went on sale in the U.S. market via AT&T Friday. But, Jeff Johnston, an analyst at Detwiler Fenton & Co. claims that his recent "checks" on the pre-order volume of the BlackBerry Z10 in the U.S. "have been light and well below expectations."
The U.S. network provider AT&T had begun the pre-order of the BlackBerry Z10 from March 12 and the Verizon Communication started from March 14, while the device will be available at the AT&T and Verizon retail stores by March 22 and March 28 respectively, across the country.
However, Barron's has published the analyst's note in which he also acknowledges that "disappointing pre-order volumes do not necessarily mean device sales will ultimately fall short of expectations."
The BlackBerry Z10 is facing consumer awareness issues in the U.S., which has been intensified with the launch of high-end smartphones such as HTC One and recently released Samsung Galaxy S4.
"BlackBerry has done a nice job with the OS however they need to figure out how to overcome the lack of mindshare their products have both with consumers and the carrier sales channel," he writes. "BlackBerry will need to spend aggressively to create awareness and demand which could be a slippery slope as cash burn could become a major issue if sales don't follow."
Johnston also said that BlackBerry will sell between 13 million to 15 million BB10 devices in 2014, which is notably less than 25 million estimate sales that other analysts predicted so far. "Bullish BB10 estimates in the 25MM unit range for FY:14 seems too high in our opinion and we believe a number in the 13MM-15MM unit range is more likely."
BlackBerry recently announced that it had received one million units of "single purchase order" of BlackBerry 10 smartphones from an "established partner." However, the company has refused to specify the buyer who placed the huge order.
To report problems or to leave feedback about this article, e-mail:
To contact the editor, e-mail: