BlackBerry Torch already in trouble, report says

Research In Motion shares drop after analyst checks show the new Torch isn't selling out.

By Kim Peterson Aug 16, 2010 2:37PM

BlackBerry Torch. Credit: © 2010 Research In Motion LimitedUpdated at 7:23 p.m. ET

 

Shares of Research In Motion (RIMM) were down 4.8% today after news that the company's newest weapon in the smart-phone wars may not be selling well.

The BlackBerry Torch began selling last Thursday, and the response has been underwhelming, according to analysts at Goldman Sachs. Calls to retailers found that most stores had not sold out.

Compare that to Apple's newest iPhone and the recently released Droid X, which sold out immediately after launch. Another problem that the analysts found is that most of the people who did buy the Torch were already BlackBerry users.

This isn't much of a surprise, since the reviews of the Torch have been less than spectacular. Although they generally praised the product, reviewers said the Torch was mostly just RIM's way of catching up to other smart-phone makers.

 

 Post continues after video:

If the Torch sales problems hold true, they signal some larger worries for RIM. The company has clearly lost its mojo if it can't gain any momentum with its highly anticipated Torch.

And if only BlackBerry users are buying the Torch, then RIM will have zero success stealing customers from Apple (AAPL) and Google (GOOG). In fact, the majority of BlackBerry users have indicated a willingness to jump ship for the iPhone or an Android phone.

Goldman has a sell rating on RIM, and said the Torch sales sputters are positives for Qualcomm (QCOM) and Motorola (MOT), according to Street Insider.

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39Comments
Nov 22, 2010 12:26PM
avatar
First Phone, Blackberry 8100, second phone, blackberry 8520, third--blackberry 9100..what does apple have? a phone that crapps out on networks, cant make a proper call without dropping it OR be able to keep a full battery for a day? Apple has nothing on blackberry--blackberry Torch is an amazing phone i wish i had one!! some phone do crap out but hey we can make calls and last a day
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