Quantcast
Channel: Phones Limited » Blackberry Z10
Viewing all articles
Browse latest Browse all 25

Blackberry cuts Z10 and Q10 production by half – coming of the A10 or low demand?

0
0

Blackberry has cut the Z10 and Q10 production by half. Is this due to the arrival of the upcoming A10, or is it due to low demand of BB10 smartphones?blackberry-a10-aristo-2

Barron’s reports Jefferies & Co. analyst, Peter Misek, saying, “The company has said that such things are part of normal lifecyle management of preparing for new devices that will be coming out. We do believe there is this new A10 device coming this fall. However, having price cuts this early before a new product is actually announced seems unusually early to us. It seems hard not to conclude there is excess inventory. The problem for BlackBerry include their not having enough apps, and missing some of the key apps. They’ve really got two choices. They can keep iterating, trying to improve their ecosystem, trying to improve the devices, and try to close the gap with Google’s (GOOG) Android and [Apple’s] iPhone. That will be challenging given that they have far more limited resources compared to those two. The other possibility is to promote this secure workspace they are offering to allow their apps to work on Android and iPhone, and go down the route of being more of a services company rather than a hardware company. We’re a little bit cautious about that dynamic, because half their revenue in hardware is coming from places such as the Middle East and Africa. As Android penetrates those markets, we think the hardware business goes away for BlackBerry there, and those are not the kinds of markets that are most likely to take up BlackBerry’s services offers. So they’re really dependent upon Europe and North America. The other question is, we don’t know if they can make their services work properly on the iPhone. And they face competition for mobile device management from the likes of Good Technology and Mobile Iron.”

Is there low demand for Blackberry smartphones, or are you looking forward to the A10? Share your thoughts through a comment on our Facebook page.

For more on the Blackberry Z10 White, visit us at PhonesLimited.

The post Blackberry cuts Z10 and Q10 production by half – coming of the A10 or low demand? appeared first on Phones Limited.


Viewing all articles
Browse latest Browse all 25

Latest Images

Trending Articles





Latest Images