This won’t do much for BlackBerry’s stock price. Pacific Crest analyst James Faucette has thrown cold water on a stunning comeback by BlackBerry by saying that inventory of the Z10 is beginning to pile up:
“Our checks indicate that as sell-through run-rates for the Z10 have declined meaningfully in the weeks following launch, we believe carriers and third-party retailers in the U.K. are already well above typically targeted inventory levels,” he writes. “Canadian carrier stores and retailers also appear to be rapidly approaching targeted levels, in our view.”
He also claims that if you want a Z10, you can get it on sale too:
Faucette notes that U.K. retailers have begun discounting the Z10. He points out that Carphone Warehouse last week started offering the Z10 at lower prices on the Three and Vodafone networks. Retailer Phones 4U likewise has reduce the price of the phone for Vodafone customers, he adds.
“We are concerned that such early pricing action combined with high inventory levels may ultimately push the Z10 down market with meaningful negative impact to gross margins,” he writes.
That’s not good. He continues to say that he doesn’t think that the Q10 will make much of a difference for BlackBerry’s prospects. That’s a downer.
Perhaps I should be queuing up for an iPhone now?
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BlackBerry Z10’s “Piling Up” In The UK
This won’t do much for BlackBerry’s stock price. Pacific Crest analyst James Faucette has thrown cold water on a stunning comeback by BlackBerry by saying that inventory of the Z10 is beginning to pile up:
“Our checks indicate that as sell-through run-rates for the Z10 have declined meaningfully in the weeks following launch, we believe carriers and third-party retailers in the U.K. are already well above typically targeted inventory levels,” he writes. “Canadian carrier stores and retailers also appear to be rapidly approaching targeted levels, in our view.”
He also claims that if you want a Z10, you can get it on sale too:
Faucette notes that U.K. retailers have begun discounting the Z10. He points out that Carphone Warehouse last week started offering the Z10 at lower prices on the Three and Vodafone networks. Retailer Phones 4U likewise has reduce the price of the phone for Vodafone customers, he adds.
“We are concerned that such early pricing action combined with high inventory levels may ultimately push the Z10 down market with meaningful negative impact to gross margins,” he writes.
That’s not good. He continues to say that he doesn’t think that the Q10 will make much of a difference for BlackBerry’s prospects. That’s a downer.
Perhaps I should be queuing up for an iPhone now?
Share this:
Like this:
Related
This entry was posted on March 7, 2013 at 6:56 am and is filed under Commentary with tags BlackBerry. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.