BlackBerry Torch already in trouble, report says
Research In Motion shares drop after analyst checks show the new Torch isn't selling out.
Updated 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.
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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.
More from MSN Top Stocks:
- Research in Motion investors unimpressed
- RIM to challenge Apple with new tablet?
- Research in Motion's loyalty problem
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The solid report comes a month after the retailer closed all of its Canadian operations.
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