Research In Motion Ltd (BBRY): No Sell Off Or Short Squeeze

However, quick success for BlackBerry in the smartphone space is more critical for the Canadian smartphone and services company than for many of its rivals. An occasional miss by Google or Apple will not cause the same threaten these companies in the same way as it would affect BlackBerry. While all three companies offer services as well as hardware, both Google and Apple have a far greater number of up to date products than BlackBerry which is trying to roll out its phones as fast as it can so as not to fall any further behind in the smartphone space. Analysts are also closely monitoring Z10 sales, and soon Q10 sales, and negative reports from them or BlackBerry itself could cause a stock panic as investors run for the exits. Even if this panic is not justified, the effects could snowball dragging down the share price to far lower levels.

This is not to say BlackBerry/Research in Motion cannot succeed. Initial sales seem positive and the figure of one million shows there is still demand amongst BlackBerry fans (CrackBerrys) for the company’s comeback phone. In a less than a month, BlackBerry expects to launch the Q10 in the United Kingdom before expanding sales into the United States shortly thereafter. With a physical keyboard, many CrackBerrys are passing on the Z10 and waiting for the Q10 instead. Only after this phone’s release will we have a better idea as to how many BlackBerry users are continuing with the brand.

Keep moving

With so many investors looking toward the Q1 2013 earnings call, I am even more looking forward to the Q2 2013 earnings call where we can get a glimpse of Q10 sales as well. Without question, the Q4 2012 earnings report is incomplete with respect to showing BlackBerry’s future potential. U.S. sales did not make it into the report and the Z10 was not available for much of the quarter. And with no conclusive findings, shares did not move dramatically, even with this highly volatile stock. As the BlackBerry/Research in Motion slogan goes, Keep Moving, we will just have to wait for the Q1 and Q2 earnings reports to see who gets to profit from this BlackBerry battle.

Alexander MacLennan owns shares of BlackBerry. The Motley Fool recommends Apple and Google. The Motley Fool owns shares of Apple and Google.