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BlackBerry to cut production by 10% as phone sales stall

By: , IntoMobile
Tuesday, August 20th, 2013 at 7:07 AM

Jefferies’ Peter Misek has been optimistic about BlackBerry in the past, but his rosy outlook may be starting to fade. According to a report in Ubergizmo, Misek is lowering his quarterly shipment estimates for BlackBerry based on checks that show build order plans were cut by 10% in the month of August.

Misek writes “we believe the build plan cut indicates sell-through is tracking well below $3.1B revenue estimate [for the quarter].” He adds that checks on Canadian stores reveal a “slow start” for the Q5 and price cuts for the Q10. As a result, Misek lowered his stock price target to $18, a $3 drop and trimmed his handset shipping estimate from 5.5 million units to 5 million units (2.5M to 2.0M for BB10 phones).

[Via Ubergizmo and Barrons]

About The Author

Kelly Hodgkins

Kelly spent the last four years covering mobile technology at places like BGR, Gizmodo and The Unofficial Apple Weblog. Before writing, she spent a few years working with and teaching others how to use Adobe Flash and Macromedia Director. Even earlier than that, she spent several years as a Ph.D student in Microbiology. When she's not writing, she can be found fishing the lakes and hiking the mountains of Western Maine with her husband and tribe of children. You can follow her on Twitter @kellyhodgkins.