BlackBerry Shipped Just 2.7M BB10 Handsets In Q1 2014
BlackBerry didn’t break out its individual BB10 device sales in its quarterly earnings report released earlier this morning, but during its conference call to discuss its performance CEO Thorsten Heins revealed that it shipped 2.7 million handsets during the quarter, which is not a great number. Nokia shipped 5.6 million Lumia devices in Q1 of 2013, for instance, and AT&T reported 4.8 million iPhone activations alone during its Q1 reporting.
BlackBerry shipped 6.8 million phones in total during the quarter, so the new BB10 devices represented just under 40 percent of total new device sales. The total number of devices shipped was already fairly unimpressive, but it’s perhaps more worrying that BB10 made up a big chunk of those sales, despite the Q10 only being available in most areas for a fraction of the quarterly period. This also marks the first full quarter of sales for the flagship Z10, so it’s really the first true barometer of the health of that device available to investors and observers.
Here, then, is the problem: The Z10 has been available for a full quarter in its primary target markets, and with a device like that, launch is generally your most successful period over the entire device life cycle, since you have the most buzz and consumer attention (perhaps barring a holiday bump). Analysts will not look kindly at 2.7 million in sales for a brand new operating system, which is probably further divided between the Z10 and the Q10.
Already, BlackBerry stock is suffering a huge hit, down 24 percent ahead of market open. That’s not likely to turn around now that we have a better idea of how RIM’s big bet on a brand new mobile operating system is faring in terms of consumer sales.