Research In Motion Ltd (BBRY) Q10 Initial Sales Going Well: Jefferies


Research In Motion Ltd (NASDAQ:BBRY) (TSE:BB) launched its BlackBerry Q10 in the UK last Friday. The devices are selling at the Carphone Warehouses in the high-end Selfridges department stores. Jefferies said in its latest research report that there was more buzz around Q10 compared to Z10 launch. Jefferies’ checks indicate that initial sell-in was 50+ per store, and this initial stock was sold out immediately. Research In Motion Ltd (NASDAQ:BBRY) (TSE:BB) will launch the device on a broader scale this week. The analysts found that salespeople have been well-trained on the device.

Research In Motion Ltd (BBRY) Q10 Initial Sales Going Well: Jefferies

Additional checks by analysts suggest that Z10 sales remain steady in the U.S., UK and Canada without any inventory or return issues. The Z10 demand was also helped by new advertising. Jefferies said that Z10 build remain unchanged after the increase two weeks ago. A couple of weeks ago, Research In Motion Ltd (NASDAQ:BBRY) (TSE:BB) shares had fallen about 6 percent after reports that Z10 returns in the United States have exceeded sales.

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Jefferies analysts said that most investors are focusing on the phones. Research In Motion Ltd (NASDAQ:BBRY) (TSE:BB)’s mobile device management (MDM) seems to be under-appreciated. Large corporations are conducting trials for BES10 even before the launch of a streamlined server-side implementation, which is expected to take place in May. Analysts believe that BES10 will find a strong supporter in AT&T Inc. (NYSE:T), and BES10 has the potential to become AT&T Inc. (NYSE:T)’s most preferred partner. The MDM software is expected to gain traction throughout this year, and will see a significant increase in revenue next year.

Guardian reports that the keyboard-based BlackBerry Q10 was selling at a rate of thousands of handsets per hour at Selfridges, making it the “fastest selling device ever” despite almost negligible publicity. Corporate buyers and exporters stand in queue to own the device. The popularity of Q10 indicates that hardcore BlackBerry users have relied on keyboard-based handsets.

Research In Motion Ltd (NASDAQ:BBRY) (TSE:BB) shares were up 2.60 percent to $15.41 at 10:36 AM EDT.