Research in Motion Ltd. (BBRY): Analysts Bearish on BB10

Research in Motion Ltd. (NASDAQ:BBRY) … er, I mean, Blackberry Ltd. (time to catch up, Google Finance and Yahoo! Finance) has been facing a string of negative news surrounding its BlackBerry devices and its operating system. After 18 months of troubles, the company was launching its new BlackBerry 10 operating system in a hope of re-energizing the brand. And after some initial reports out of the U.K. of brisk sales and even some inventory sell-outs in some retail stores, it seems that the truth may be coming out.

And the truth is, some analysts are feeling pretty bearish about where Research in Motion Ltd. (NASDAQ:BBRY) is going from here. This news comes at perhaps a bad time, as the company is expecting to launch BlackBerry 10 in the U.S. in about two to three weeks. Whatever momentum the company might have gathered in Europe may very well be gone by mid-March in the U.S. with talk of some new smartphone devices coming out in the next couple months – namely, a new Apple Inc. (NASDAQ:AAPL) iPhone, the Samsung Galaxy S4 and some new Microsoft Corporation (NASDAQ:MSFT) Windows Phone devices.

BlackBerry Ltd (BBRY)Research in Motion Ltd. (NASDAQ:BBRY) – I mean, BlackBerry Ltd. – is likely to see its stock fall to $7 per share, according to Michael Genovese of MKM Partners. He went so far as to declare that there is a “90 percent chance” that the new OS will fail. As of 1:30 p.m. Friday, BBRY stock was selling at $13.33 per share, which is down nearly 4 percent on the day. Genovese downgraded the stock to “sell,” citing a decided lack of applications that will lead to the demise of the OS, though MKM likes the OS.

“Without a much larger and popular set of applications to choose from, we believe consumers will have little incentive to switch to (BlackBerry 10) from Android or Apple devices,” Genovese wrote in his note.

What do other analysts say? Their focus was on the sales numbers so far.

A couple of other analysts have been tracking the sales numbers of Research in Motion Ltd. (NASDAQ:BBRY) BlackBerry 10 in the U.K., where the new smartphone launched in January. Apparently, reports of dramatic sell-outs was a bit exaggerated. According to analysts at Canaccord Genuity and Pacific Crest, the sell-outs were more due to low initial inventory and not due to high demand. After expectations of as much as 1.7 million units being sold by the end of the company’s fiscal year March 2, the expectation is that only 300,000 units will be sold, which would mean a fifth consecutive quarter of losses.

In a Canaccord Genuity research note, “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. Our follow-up checks have indicated steady but modest sales levels.”

Over at Pacific Crest, it’s a very similar report in its research note. “We continue to believe the Z10 launch involves relatively small shipment volumes and only moderate sell-through so far in markets which have historically been some of BlackBerry’s strongest. As a result, investor optimism that the BB10 could reverse the company’s trajectory appears to be well overdone at current levels, in our view.”

Have you seen the BlackBerry 10 operating system by Research in Motion Ltd. (NASDAQ:BBRY) – er, I mean, BlackBerry Ltd.? What are your thoughts about it, and do you think the new OS will have a fair shot in the U.S. market when it launches sometime next month? Give us your thoughts in the comments section below.

DISCLOSURE: I own no positions in any stock mentioned.

Please see these related BBRY articles:

Sell the News, or Just Sell?

What a BlackBerry Flop Means for Nokia

This Week’s Dumbest Stock Moves

blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

The 10 Countries with the Highest Suicide Rates

The 10 Most Technologically Advanced Countries in the World

The 10 Safest Countries in the World to Live in Peace

The 10 Top Selling Smartphones in the World 2014

The 12 Biggest Shopping Centers in the World

The 10 Friendliest Countries in the World

Qihoo 360 Technology Co Ltd (QIHU), Actavis plc (ACT), Yahoo! Inc. (YHOO) Among 20 Long Ideas from Sohn Canada

The 10 Laziest Countries in the World

The 10 Most Polluted Countries in the World

The 10 Most Dangerous Cities in America 2014

The Top 10 Gold Producing Countries in the World

The 10 Tallest Buildings in the World

The 10 Richest Stand Up Comedians in the World

The 10 Fattest Countries in the World

The 5 Best Summer Jobs for Teens

The 10 Most Religious Countries in the World Keeping the Faith

The 10 Most Educated Countries in the World

The 10 Most Popular Cell Phones in the World

The 10 Drunkest Countries in the World

The 10 Most Expensive Private Schools in the World

The 10 Smallest Countries in the World

Walking Dead Season 5 Spoilers You’ll Wish You Didn’t Know

The 10 Poorest Countries in the World

The 10 Greenest Countries in the World

The Top 10 Countries with the Highest Population in the World

The 10 Most Visited Countries in the World

The Top 10 Star Wars Characters in the Iconic Series

The 10 Most Expensive Android Phones in the World

5 Reasons Why The Illuminati Is Real and a Threat to Society

The 6 Scariest Halloween Costumes Ever Screamed At

The 4 Biggest Hedge Fund Managers in the World Today

The 15 Most Densely Populated Countries in the World

The 10 Biggest Tea Drinking Countries in the World

Top 6 Ways to Improve Your Checkout Process and Close Sales

The 5 Most Profitable Online Businesses You Can Start Today

The 20 Most Profitable Hospitals in the US

The 5 Most Profitable Home Businesses to Start

The 7 Teams that Will Win the Stanley Cup in 2015

The Top 10 Most Expensive Digital Cameras to Snap Stunning Shots With

The 10 Highest Quality Fast Food Restaurants In America Today

The 8 Best Halloween Decorating Ideas to Spook Up Your House

10 Marvel Women that Should Get a Movie Right Now

The 20 Best Remixes of Popular Songs that Will Make You Forget the Originals

7 Most Expensive Cities in the World

5 Least Expensive Cities in the World

10 Celebrities Who Believe In Scientology

10 High Margin Food Products to Build a Business Around

The 10 Most Expensive Clothing Stores in the United States to Get Decked Out At

The 5 Biggest Kickstarter Scams That Swindled Backers’ Donations

The 10 Most Expensive Boarding Schools In the World

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!