Research In Motion Ltd. will give investors Friday Their first real insight into how the company’s all-or-nothing bet on a new breed of BlackBerry devices is faring.
The smartphone maker
long ago stopped providing financial guidance, and analysts’ forecasts of quarterly shipments of the new phones are all over the map-ranging from as few as 2.75 million to as many as five million. In part, the estimates vary so much because RIM staggered the devices’ rollout around the world.
The touch screen
Z10 has been selling in Canada and the UK for most of this year, and Friday’s report would offer the first full quarter of Z10 shipments in the U.S. market.
Results will not include shipments of the keyboard-equipped Q10 in the U.S. since That device only went to there customers Earlier this month. In the quarter, RIM is also expected to ship roughly 5 million older model BlackBerrys.
Sales of the new BlackBerrys are expected to fall well shy of Competitors Including Apple Inc. ‘s iPhone and Samsung Electronics Co.’s smartphones. But respectable sales in RIM’s fiscal first quarter ended June 1 could bolster confidence in RIM Chief Executive Thorsten Heins’ turnaround plans.
RIM shares, Which tumbled last year amid delays in the new phones and fears about the company’s survival, have surged 50% so far this year. The stock closed Friday at $ 14.91 on Nasdaq, giving RIM a market value of $ 7.8 billion.
Since taking the helm in January 2012, Mr.. Heins has avoided radical shifts like selling off the company’s equipment operations, or the entire company. Instead, he has focused on pushing out BlackBerry 10, the company’s long-delayed new operating system, and newer phones like the Z10 and Q10 that use it to market.
Time is not on the Waterloo, Ontario, the company’s side. RIM’s share of U.S. smartphone sales from February to April of this year were less than 1% of total sales, says Kantar Worldpanel Comtech, down from 5% the previous year. By comparison, iPhones had 41% of the market, and Android phones had 51%.
RIM’s closest competitor these days, say analysts, is Microsoft Corp. ‘s Windows operating system, Nokia Corp. Which powers. phones among others, and has 5.6% of the U.S. market.
“Every quarter That passes without superlative sales is closer to them giving them [the hardware business] up, or maybe looking to sell That business or somehow make a transition,” said Charles Golvin, a Forrester analyst. “No Matter Which road they choose it is a tough one.”
RIM has recently raised expectations. When the Z10 went on sale in Canada and the U.K. In February, the company hailed the launches as the “best ever” For those countries without providing details. RIM has yet to disclose U.S. sales figures for the phone.
The company has been less effusive about the Q10 Which went on sale in some markets in May but only launched in the U.S. Earlier this month. Analysts have long expected the Q10 to sell well, citing what they said would be pent-up demand from BlackBerry loyalists eager for a new keyboard-equipped phone.
Overall, RIM is expected to report quarterly revenue of $ 3.3 billion and a profit of 5 cents a share. A year ago, it posted a rare operating loss as sales fell 33% to $ 2.8 billion.
At a conference last month, Mr. Heins Introduced a lower-priced phone, the Q5, Which the company is aiming at emerging markets. That phone went on sale in Dubai this month.At the same event, Mr. Heins gave what many analysts Interpreted as the first glimpse of a strategy shift away from hardware sales and into software and services-focused revenue streams. He said BlackBerry Messenger, the company’s popular messaging tool, would soon be available on Apple and Android devices.
This week RIM unveiled another push into services: allowing corporate clients the ability to manage non-BlackBerry devices using RIM software. That program, called Secure Work Space, lets corporate technology departments to manage Apple or Android devices using a new version of RIM’s BlackBerry Enterprise Service, or BES. The offering would cost $ 99 a year per device.