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BlackBerry dropped in New York trading today after investment research firm Wedge Partners said they have probably scaled back production plans for the BlackBerry Z10 device.
The company may have cut 4 million to 6 million units, Brian Blair, a Wedge Partners analyst, said today in a note, without saying where he got the information. The shares erased gains of as much as 3.3 percent and were down 0.6 percent to $14.81 at the close in New York.
“If accurate, these cuts would mark a meaningful hit to BlackBerry’s own expectations, and full-year units will come in well below consensus views,” said Blair, who is based in New York.
“The recent carrier launches in the U.S. have provided no evidence of meaningful sell-through, and a production cut could simply be a reaction to weak sales, post the U.S. launch, and an effort to avoid a channel inventory buildup.”
BlackBerry stock has fallen as low as $12.50 and climbed above $16 in the past two months as analysts speculate on how the new BlackBerry 10 lineup of phones is doing against the iPhone 5 and Samsung Galaxy S lineup.
BlackBerry doesn’t comment on speculation, Crystal Roberts, a spokeswoman, said in response to the Wedge report.
The article BlackBerry Drops due to Report of Cutback in Production Plans appeared first on RAPIDBERRY.NET
