Too soon to judge BlackBerry's turnaround, says analyst

Too soon to judge BlackBerry's turnaround, says analyst

BlackBerry's success in turning around its business should be judged by its next quarterly results, an analyst has claimed.

The Waterloo-based manufacturer is set to announce its results tomorrow evening, which will give the first indication of how its make or break BlackBerry 10 operating system. The UK was the first market to get the Z10 handset, which went on sale in January.

While BlackBerry has a subscriber base of 79 million customers, its share has eroded as Apple and Samsung capitalised on booming demand for smartphones. The bulk of BB10 sales in the UK have been driven by enterprise customers, with operators predicting the forthcoming Qwerty-based Q10 will have a heavier consumer demand.

Jan Dawson, chief telecoms analyst at Ovum, said tomorrow's results should not be seen as critical for BlackBerry, given the Z10 only went on sale in the United States last week, the Q10 has yet to go on sale and the manufacturer has had supply contraints. He said: 'For all these reasons, even though many observers will see this quarter’s performance as a referendum on BlackBerry 10, they should instead wait for the next quarter’s results, which will be a much better indicator of the long-term success or failure of the platform. Given that context, anything more than a million Z10 sales in the past quarter may be considered a success for BlackBerry. Anything less will be disappointing.

'And we’ll also have to watch for overall sales, which may have been depressed by would-be buyers waiting out the launch in their market. Most of the devices sold in the quarter will actually have been BlackBerry 7 devices, and most of those will have been sold in emerging markets such as Latin America, Indonesia and other markets where BlackBerry remains a popular brand in smartphones.'

Author: Graeme Neill

Written by Mobile Today
Mobile Today


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