BlackBerry Z10 Sales Estimates Cut By 83%

The BlackBerry Z10 and its Blackberry 10 OS were meant to usher in a new era for the handset and software manufacturer. Instead investors on the street are now slashing their sales estimates for the device by a whopping 83 percent.

According to Canaccord Genuity analyst T. Michael Walkley, the BlackBerry 10 smartphone was originally estimated to sell 1.75 million units in the February quarter. Instead, sales in the UK and Canada have reached towards just 300,000 devices as supply issues continue to suffer and demand wanes.

According to Walkley in a note to investors:

“Our global surveys post the recent BlackBerry Z10 launch indicated mixed initial sales with limited initial supply cited as the reason for early post-launch stock-outs at some carrier stores rather than overwhelming demand.”

Walkley adds:

“Our follow-up checks have indicated steady but modest sales levels. With new BB10 smartphones launching in the U.S. only in mid-March or later at subsidized prices no better than competing high-end Apple/Samsung smartphones, combined with our expectations for the Galaxy S IV to launch at a similar time frame in the US market, we are lowering our BB10 sales estimates for the February quarter and all of F2014.”

The note to investors claims that the BlackBerry 10 will release to only modest returns in the United States. Walkley notes that the BlackBerry Q10 will only launch on Sprint Wireless, and the Z10 will be a T-Mobile exclusive upon launch.

The report further proclaims:

“Further, 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.”

The statement concludes:

“With our expectations BB10 smartphones will face increasing competition from a host of new Android and Windows smartphones and potentially a new iPhone in 1H/C2013, we anticipate global carrier partners will order cautious initial BB10 inventory levels, leading us to lower our Feb. quarter and F2014 BB10 estimates.”

BlackBerry maintains a $9 share sell rating.

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