NPR : News

Filed Under:

Goldman Cuts BlackBerry Rating After Stalled Z10 Launch

Goldman Sachs on Monday downgraded BlackBerry after a disappointing launch for the company's new smartphone, the Z10.

The Wall Street Journal reports that Goldman slashed its investment rating on the Canada-based company — formerly known as Research in Motion, or RIM — to neutral from buy, citing weak support for the new product.

"While we thought the international launch was solid, the U.S. launch is critical for BlackBerry's ultimate success," Goldman analyst Simona Jankowski wrote in a research note quoted by the Journal. "Our retail checks at over 20 store locations since March 22, including at AT&T, Best Buy, BBY and Radio Shack, revealed a surprising lack of marketing support and poor positioning of the product. We also saw limited advertising around the launch."

Forbes quotes Citi analyst Jim Suva, who rates BlackBerry a "sell," as saying his checks revealed "shockingly low support by AT&T with extremely limited signage" for the Z10.

After last week's stalled launch, BlackBerry stock tumbled.

The handheld BlackBerry once dominated the smartphone business, but in recent years Apple's iPhone has captured 38 percent of the market. The Z10 has been cast as a "make or break" moment for RIM to make back some ground.

Speaking to The Associated Press last week, CEO Thorsten Heins acknowledged that the U.S. market is essential to the company's future.

"You got to win here to win everywhere else," he said. "That's just the way it is. We've lost market share quite a bit, to put it mildly, and we absolutely need BlackBerry 10 to turn us around."

Copyright 2013 NPR. To see more, visit http://www.npr.org/.

NPR

Once Outlaws, Young Lords Find A Museum Home For Radical Roots

Inspired by the Black Panthers, the Young Lords were formed in New York City by a group of Puerto Rican youth in 1969. Their history is now on display in a new exhibition.
NPR

Europe's Taste For Caviar Is Putting Pressure On A Great Lakes Fish

Scientists say lake herring, a key fish in Lake Superior's food web, is suffering because of mild winters and Europe's appetite for roe. Some say the species may be at risk of "collapse."
NPR

Once Outlaws, Young Lords Find A Museum Home For Radical Roots

Inspired by the Black Panthers, the Young Lords were formed in New York City by a group of Puerto Rican youth in 1969. Their history is now on display in a new exhibition.
NPR

Google Brings Internet Service To Sri Lanka Through, Balloons?

Google has successfully launched its "Project Loon" in Sri Lanka. The goal of the program is to use a series of high-altitude balloons to bring 3G service to underserved areas.

Leave a Comment

Help keep the conversation civil. Please refer to our Terms of Use and Code of Conduct before posting your comments.