The launch of the new Blackberry 10 invited a range of mixed reactions from the Wall Street Journal on its stock analysis.
Recently, BlackBerry opened with stocks at a much higher price than when Thorsten took over. It suddenly took a hike by $16.62 and then abruptly dipped. The reasons for this are numerous.
The biggest being the absence of a surprise element. With so much of publicity over the months through media channels, posts, numerous videos, it left nothing for people to look forward to. The only elements of surprise were alterations to the company’s name and the inclusion of Alicia Keys.
Secondly, Blackberry disappointed people in the US after disseminating news about late entry of their devices in the market.
The media who got their hands on the devices had a week’s time to test. Most of the analysts are devoid of this liberty.
Let’s see what Wall Street has to say about BB 10.
Simona Jankowiski, an analyst at Goldman Sachs believes that Canada, UK and a few more markets will show potential sales in the month of February, and the ASP (Average Selling Price) will impact the financial status. According to her, other analysts would need to increase their estimates so as to make the prices go a level above.
Tom Astle, a technical analyst remarked that media persons appointed to test BB loved the Z10. The pros included a well coordinated and executed launch, the UI differentiation, and the branding alterations to BB. The cons seemed the same as stated above with addition of missing features, glitches in the software etc.
He also suggested that BlackBerry can quote $1.60 in EPS the following year but seems hesitant. He also concluded that the company is progressing well.
Mark Sue of the RBC pointed out the different apps which BB device has in store. He also stated that BlackBerry has the ability to differentiate itself from the crowd.
According to the Jeffries, 70,000 + devices have been sold in the UK and still counting.
The biggest risk which has been pointed out by analysts is to the service revenue which can go up to 1 billion dollars in the coming year.
Credit Suisse also highlighted a few things as follows.
The hardware is pretty ordinary; however it meets the specifications of a high level phone.
BlackBerry won’t be able to pull the market which has Samsung and Apple dominance especially with the launch of iPhone 5.
The phone is stated to be positioned at number 4 in the application ecosystem by the time it reaches the United States.
Cannacord Genuity pointed out that BlackBerry doesn’t offer product differentiation. This is, however, contradictory to the fact that there have been more than 50% orders made in advance by non- blackberry users alone.
Mike Walkely sees that the revenue risk will face pressure from BYOD. This has invited a bit of disagreement since some think that BYOD, connected with BES will continue to generate revenue. They also seem to point out that revenue options will open up through the hardware connected with Mobile Fusion. However, it has not been confirmed.
- The analysts are looking for more applications from Blackberry.
- The OS has invited mixed reactions from them on its difference from others.
- The service revenue is reasonably the cause of concern.
It is noted that the analysts have gone for an estimate reduction on account of the delay of Z10 in market and the unfavorable launch time of the Q10.