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BlackBerry Shares Continue to Slide Despite BB10 Reveal

By - Source: Reuters | B 26 comments

Investors are spooked over the lukewarm reviews and uncertain release dates.

Reuters reports that BlackBerry shares continue to slide despite revealing the new BlackBerry 10 OS and related devices on Wednesday. This decline is fueled by a flood of "lukewarm" reviews, signaling that the company's struggle to gain momentum in a "hyper-competitive" smartphone market is just the beginning.

According to the report, BlackBerry's shares fell 12-percent on Wednesday, and then almost 10-percent on Thursday. Investors are reportedly spooked by reviews and a later-than-expected yet still unspecified launch date of the two announced BlackBerry 10 phones. Analysts have cut their price targets and forecasts, Reuters said.

BlackBerry, formerly known as Research In Motion (or RIM), is looking to make a big splash with consumers this weekend through a Super Bowl ad promoting the upcoming Z10 touch-screen device. But the device isn't launching in the States until sometime around March due to carriers needing more time to test the phone on their networks. Thus consumers will likely have forgotten about the expensive ad by the time the smartphone finally shows up on the market.

Even more, TD Securities analyst Scott Penner pointed out that buzz surrounding the BlackBerry Z10 may be stifled somewhat thanks to Samsung's Galaxy IV device announcement. Also working against BlackBerry is whatever surprises Mobile World Congress 2013 has in store when it kicks off on February 25.

Another problem BlackBerry faces is the release of the QWERTY version of its Z10, the BlackBerry Q10 smartphone. As it stands now, there are no BlackBerry 10 devices on the market. The company plans to launch the Z10 sometime around March, and the Q10 is slated to arrive sometime around April. Like the former device, BlackBerry hasn't set an actual street date for the Q10 phone.

That said, BlackBerry could still lose traction in a growing market full of Android, Windows Phone and iPhone devices as the company slowly rolls out a mere two devices before the end of 2Q13. In the near-term, this could pose as a problem for investors.

"While later-than-expected availability of the Z10 and Q10 devices shouldn't impact the longer-term potential success of the BB10 platform, we believe it does mitigate one of the near-term catalysts for the stock," said Paradigm Capital analyst Gabriel Leung.

A Brief Look at the Technical Specs of BlackBerry Z10, Q10

BB10 Interview With the QNX Boss of BlackBerry OS

Check out our hands-on with BlackBerry 10 on the Z10.

Interview With the BlackBerry Z10, Q10 Industrial Designer

A Complete Video Walkthrough of BlackBerry 10 OS

Read the full live blog here from the BlackBerry Experience

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  • 7 Hide
    A Bad Day , February 1, 2013 10:51 PM
    From the king of the phones in early-mid 2000s to being tossed into the dumpster...
  • 5 Hide
    iknowhowtofixit , February 1, 2013 11:03 PM
    Not sure why this comes as a surprise to anyone...
  • 0 Hide
    house70 , February 1, 2013 11:15 PM
    For a company on the brink, like RIM, I would have expected the last year or so to be one full of anticipation, rumor mill churning, their own people working in overdrive and coming out with firm release deadlines that get met for a change.
    Instead, I have hardly heard any news from them, except the mellow "we're working on something, it will come out whenever".
    Guess what, the market (the business customers, their old and reliable base) is in dire need of a phone that can last a few days away from a charger. They put out this new thing with a lackluster battery (IMO, the main shortcoming of this new phone). They could have made it really easy to go and install Android apps on it, instead of relying on the hopes that their own marketplace will attract developers again. Main thing, they could have made this a main selling point: "look at our phone, you can install your Android apps and they'll run natively, no need for you to wait for a BB app".
    I really want them to succeed, but I begin to wonder if they want the same.
  • Display all 26 comments.
  • 0 Hide
    icemunk , February 1, 2013 11:16 PM
    If you want to make some money, I would recommend buying some BB shares now. $13 a share is a buy, investors are fickle
  • -5 Hide
    bystander , February 1, 2013 11:19 PM
    Frankly, customers are sheep. Unless BB was to come out with something completely different and spectacular, the sheep will follow their sheep herder, which currently is Android and iPhone. Win Phone has a chance, but that too is going to be rough, at least they have deep pockets to stick out the slow starting period.
  • 3 Hide
    A Bad Day , February 1, 2013 11:22 PM
    icemunkIf you want to make some money, I would recommend buying some BB shares now. $13 a share is a buy, investors are fickle


    I'm shorting against BB's stock as of now.
  • 1 Hide
    IndignantSkeptic , February 2, 2013 12:07 AM
    Blackberry is a victim of vendor lock-in. It doesn't matter if their system is superior, people will just refuse to re-buy all software. It really shouldn't be his way. It should be that once you buy software you have the right to use every platform's version of it.
  • 2 Hide
    shqtth , February 2, 2013 1:48 AM
    Shareholders bitch about anything.

    They just need to shut up, and their stock will go up, but shareholders screw themselves.

    The more shares get dumped = the more shares go down
  • 0 Hide
    PreferLinux , February 2, 2013 2:19 AM
    house70For a company on the brink, like RIM, I would have expected the last year or so to be one full of anticipation, rumor mill churning, their own people working in overdrive and coming out with firm release deadlines that get met for a change. Instead, I have hardly heard any news from them, except the mellow "we're working on something, it will come out whenever". Guess what, the market (the business customers, their old and reliable base) is in dire need of a phone that can last a few days away from a charger. They put out this new thing with a lackluster battery (IMO, the main shortcoming of this new phone). They could have made it really easy to go and install Android apps on it, instead of relying on the hopes that their own marketplace will attract developers again. Main thing, they could have made this a main selling point: "look at our phone, you can install your Android apps and they'll run natively, no need for you to wait for a BB app".I really want them to succeed, but I begin to wonder if they want the same.

    Actually, running Android apps would be a sure way to get problems from Google, and that would probably finish them.
  • 2 Hide
    atminside , February 2, 2013 2:55 AM
    some one needs to buy out rim and make it private. Shareholders are short term minded retards that most of them don't know a damn about technology.
  • 0 Hide
    soundping , February 2, 2013 3:28 AM
    atminsidesome one needs to buy out rim and make it private. Shareholders are short term minded retards that most of them don't know a damn about technology.

    Remember their job creators...
  • 0 Hide
    calmstateofmind , February 2, 2013 3:35 AM
    BB 10 will catch on. People didn't leave BB because they sucked, they left because something better came along (iphone). Give it some time, enough time for major apps to jump on the BB market and for people to get their upgrades, and BB will come back.

    BB fans are very loyal and will definitely give this a chance when presented if they carry all the same apps and have same functionality to an android; especially businesses.
  • 0 Hide
    SneakySnake , February 2, 2013 3:52 AM
    There's stock is still up like 300% from what it was 6 month ago ($4)
  • 0 Hide
    calmstateofmind , February 2, 2013 3:56 AM
    SneakySnakeThere's stock is still up like 300% from what it was 6 month ago ($4)


    Yeah, but it's down over 10x from what it was 5 years ago, and down 5x what it was just a year and a half ago. RIMM stock is abysmal right now, don't kid yourself.
  • 0 Hide
    Anonymous , February 2, 2013 4:59 AM
    A lot of people hope that the market place does have room to support a few mobile phone OS makers. But the big problem is that the functionalities of the smartphones right now is mostly provided by 3rd party app makers, not the mobile phone OS makers themselves. And 3rd party app makers normally do not find there is enough incentive to support a small user base, and hence creating a vicious cycle that there are more apps available for the popular phone and less apps available for those that are not popular. This phenomenon has happened to the personal computing era in the 80s and 90s, and see where does C64, Amiga or Atari ST ends up, despite some machines are technically more superior. The smartphone wars is mostly over with people all around the world has already gotten a smartphone or some kind now. Even Microsoft will have problems finding app developers to write apps for W8 phone alone, their only advantage being trying to force W8 on every new PCs sold and hence force increase the user base. But the effectiveness of that tactics is also questionable now.
  • 2 Hide
    icemunk , February 2, 2013 7:07 AM
    A Bad DayI'm shorting against BB's stock as of now.


    Planning on losing some money eh?
  • 2 Hide
    Cryio , February 2, 2013 7:35 AM
    The Z10 looks like the best phone for me. I'm not a application-heavy users, I just need a light, fast, slick, usable phone. It's got great social connectivity, so what's not to like.
  • 0 Hide
    house70 , February 2, 2013 11:14 AM
    PreferLinuxActually, running Android apps would be a sure way to get problems from Google, and that would probably finish them.

    Not quite. Remember, Google does not have the monopoly on apps, same apps can be found on Amazon Appstore, SlideMe, to mention a couple of legit markets out there.
  • 0 Hide
    Angry Bellic , February 2, 2013 3:16 PM
    HMMM
  • 0 Hide
    spentshells , February 2, 2013 4:08 PM
    calmstateofmindYeah, but it's down over 10x from what it was 5 years ago, and down 5x what it was just a year and a half ago. RIMM stock is abysmal right now, don't kid yourself.


    Name a stock that is not down, speculation really has no place in the stock market, actual performance of the company should be the only legal way to rate stock.

    Its all a Big scam, do you think big brother wants you safe and secure from their eyes? NOPE
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