As per media reports, sales of
Research In Motion Limited
) new BB10 operating system-based smartphone Z10 has slowed down
after the initial good response in the gulf region. The news
comes on the back of a poor response for the company's latest
smartphone in the U.S. market, where it made its debut on Mar 22,
BBRY launched its much-awaited BB10 operating system (OS)
based device on Jan 30, 2013 and started selling the phone in the
Gulf region from Feb 10, 2013. Initially the device received a
good response as it was one of the most anticipated smartphone
launches of 2013. However, the initial momentum fizzled out after
15 days of the launch.
According to the Canadian handset manufacturers, the company
has received good pre-orders for the phone and are working with
its two distributers in the Gulf region to keep pace with the
demand. However, one of the two distributors has sold only
300,000 Z10 phones since its launch while a couple of online
retailers are selling the phone at a discount of
Historically, Gulf, which consists of six oil rich countries,
is an important market for BBRY. At the end of 2012, BBRY became
the leader for smartphones in the Gulf region, with a market
share of 35%. The Canadian company has even left behind
) and Samsung Electronics Company of South Korea.
BBRY witnessed a similar fate in the most lucrative North
American market, as the company failed to create any meaningful
response when it launched the phone with
) during last weekend.
Despite the negatives there are some reasons to cheer for
Research In Motion Limited. Z10 is now available in 25
countries and according to recent report has done well in its
home country. BBRY has also received a record single purchase
order of one million handsets from a telecom partner.
Furthermore, BBRY is yet to launch its QWERTY-based phone in the
Gulf region, which is expected to be more appealing, particularly
to business customers.
However, it remains to be seen how the company counters
declining sales in the Gulf region particularly when Samsung
Electronics will start shipping its Galaxy S4 smartphones from
Research in Motion Limited currently carries a Zacks Rank #3
APPLE INC (AAPL): Free Stock Analysis Report
RESEARCH IN MOT (BBRY): Free Stock Analysis
NOKIA CP-ADR A (NOK): Free Stock Analysis
AT&T INC (T): Free Stock Analysis Report
To read this article on Zacks.com click here.