BlackBerry Ltd. (NASDAQ:BBRY), formerly Research in Motion Ltd. (NASDAQ:RIMM), revamped its company name and its version of the smartphone when it announced the launch of BlackBerry 10 last week, an operating system compatible for touch-screen smartphones. As the company has suffered mightily in the mobile device space over the last several years – just about since the iPhone was introduced in 2007 – this seems to be the last stand for the company, if all of the buzz and marketing work by the company is any indication.
Does changing its name effect a change in fortunes for BlackBerry Ltd. (NASDAQ:BBRY)? Well it is still too early to tell for the Canada-based company, but some encouraging signs have come out from the U.K. launch last Thursday which has resulted in a couple of positive outlooks from analysts leading into the North America release of the new BlackBerry Tuesday in Canada. While returns are very early, there seems to be something impressive going on, as BlackBerry stock spiked 15 percent in trading Monday, closing at $14.98 per share.
This follows on a series of positive reviews for the new smartphone OS and handsets. What might other analysts say on the ground in the U.K., and what might this mean for the future of the company?
Jefferies analyst Peter Misek noted last week in the initial couple days in the U.K. that “(s)ome stores had lineups out front with widespread sell outs of the white Z10 and limited stock of the black Z10,” he said in a note. “Also, our checks indicate that pre-orders in the UAE and Canada have had a solid start. While this is not the crux of our call, these initial data points could provide some relief as many thought that the Z10 was DOA.”
While it was believed that a large number of Z10 buyers would be loyal BlackBerry users, one analyst, Todd Coupland of CIBC, estimated from his research that nearly half of pre-orders from Canada are those who use other devices. “This was a surprise and a datapoint that will be watched closely in other regions,” he said in a note.
Despite the early positive feelings, Bernstein’s Ferragu held out some long-term skepticism about BlackBerry Limited (NASDAQ:BBRY). “We remain skeptical of BlackBerry’s ability to orchestrate a sustainable comeback. But we believe that a successful launch will increase the option value of credible positive outcomes like a stabilized niche positioning, the development of new business models, strategic partnerships or even an acquisition.”
What do you think? Have you given up on BlackBerry Limited (NASDAQ:BBRY)? Could you be converted into a believer if actual sales numbers impress? Can BlackBerry rally and become a viable “other” option as alternative to Apple Inc. (NASDAQ:AAPL) or Google Inc. (NASDAQ:GOOG) in the smartphone space? Let us know yoru thoughts in the comments section below.
DISCLOSURE: I own no positions in any stock mentioned.
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