Report: BlackBerry Device Production Cut

The Globe And Mail is reporting that according to Jefferies Analyst Peter Misek, BlackBerry has cut production of their BlackBerry Z10 and Q10 devices. What’s telling is that this is not the first time that production has been cut:

BlackBerry Ltd. has cut back production of its new smartphone devices by at least another 10 per cent after having sliced their monthly output in half just a month ago, according to Jefferies analyst Peter Misek.

That says to me that demand for BlackBerry 10 devices is tepid at best. Something that is further highlighted by this:

He also said there was only “very modest demand” for the new Q5 smartphone as it came on sale in Canada last week.

Here’s the reasoning behind this:

“We believe the build plan cut indicates sell-though is tracking well below the Street’s $3.1-billion revenue estimate,” Mr. Misek said in a research note. “Our Canada store checks indicate the Q5 launch is off to a slow start and Q10 prices have started to get cut.”

Not good if you’re a BlackBerry fan. If true, things are not looking good for the struggling smartphone vendor.

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