BlackBerry 10 makes “good start” with 1 million Z10 sales

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Ovum’s chief telecom analyst Jan Dawson said initial Blackberry 10 sales are good, although it is too soon to make a judgment on its long-term fortunes

BlackBerry has achieved “decent traction” for its new operating system by achieving one million Z10 sales, an analyst has said.

Ovum chief telecom analyst Jan Dawson said hitting the one million mark was a “good start” for the manufacturer, which experienced supply constraints after the launch of the BlackBerry Z10 on January 31.

BlackBerry’s results for the fourth quarter, released today, show that despite promising BlackBerry Z10 sales, it has lost 3 million customers.

In the three months to March 2 the manufacturer saw profits rise to $94 million from $14 million in the previous quarter.

Revenue for its fourth quarter was $2.7 billion, down two per cent from Q3 and 36 per cent in the same period last year.

Dawson said BlackBerry’s Q4 performance was only a rough indication of the success of its new operating system, and said the next quarter will provide a better basis for judging the company’s long-term fortunes.

He said demand for BlackBerry devices in markets where the Z10 is not yet available would have been depressed.

“The loss of three million subscribers is a worrying sign, however. Blackberry’s single biggest asset has been its large existing subscriber base, who are the most likely buyers of BlackBerry 10 devices, and the acceleration in the decline of that base reduces the size of the addressable market for Blackberry 10.

“The loss of subscribers means declining service revenues, which will put further pressure on margins, which have dropped in recent years too,” Dawson said.

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