Saturday, November 19, 2011
BLACKBERRY SALES PLUMMET AFTER INITIAL RELEASE
After some initial excitement for the new line of BlackBerry 7 smartphones and a strong launch--both unusual for RIM for the past year--sales are starting to sputter. That's according to Canaccord Genuity analyst T. Michael Walkley, who said his checks indicate a slowing trend for BlackBerrys.
It's likely sales have been blunted by the release of the iPhone 4S, as well as the lower price of the legacy iPhone 4 and 3GS models as well. The coming release of the Galaxy Nexus and phones running on the recently unveiled Android 4.0 Ice Cream Sandwich operating system is expected to provide additional pressure, while Nokia may take some shine off RIM's growth overseas, Walkley said. We anticipate increasing competition across all tiers of RIM's products in 2012," he said in a research note sent to clients today.
RIM had hoped for its upgraded BlackBerry 7 operating system to inject some life back into the company's prospects and get it back on track as it migrates to a slicker next-generation platform. With that platform, BBX, expected to be delayed until the middle of next year, it's more important than ever for its current BlackBerry 7 phones to have a strong showing.
A RIM representative wasn't immediately available for comment.