Blackberry Z10 Sales: If you are not aware of it by now, you will soon realize that Research In Motion Ltd (NASDAQ:BBRY) is going through a rough patch. In fact, saying that the company is facing a rough patch is being kind.
For a better idea of what is going on, check out these two pieces: Research In Motion/BlackBerry: This Is Why Bears Are Pushing Shares Lower and Research In Motion/BlackBerry: Here’s Why Shares Are Falling Today…It’s Not Pretty
In the second story published yesterday, we discussed the fact that Research In Motion Ltd (NASDAQ:BBRY) is allegedly dealing with bad sales coupled with a mass amount of returns. Here is a brief excerpt from the piece:
“According to Detwiler Fenton, this has led to something that you don’t see very often (if at all): In several cases, returns are now exceeding sales, a phenomenon we have never seen before.”
In other words, Fenton is claiming that returns of the Z10 are exceeding sales.
As you can imagine, this is a pretty big claim and one that Research In Motion Ltd (NASDAQ:BBRY) does not agree with.
The company said on Friday that it “would ask securities regulators in Canada and the United States to probe a report about retail return rates for its new Z10 smartphone that it called “false and misleading.””
While Detwiler Fenton is making claims about high return numbers, BlackBerry/Research In Motion does not agree with this in the slightest. In fact, the company said that the return rate is in line with industry norms.
Research In Motion Ltd (NASDAQ:BBRY)’s CEO Thorsten Heins added the following (emphasis added):
“To suggest otherwise is either a gross misreading of the data or a willful manipulation. Such a conclusion is absolutely without basis and BlackBerry will not leave it unchallenged.”
At this point, there appears to be a showdown brewing between investment firm Detwiler Fenton and BlackBerry/Research In Motion. On one side, you have Detwiler Fenton claiming that returns are exceeding sales and on the other side you have the smartphone manufacturer saying that this is not true.
At this point, all we can do is wait to see what the Securities and Exchange Commission and the Ontario Securities commission come up with over the next few days.
Shares of Research In Motion Ltd (NASDAQ:BBRY)’s stock fell eight percent yesterday.
Here’s a look at the move down: