Nokia (NOK) & BlackBerry (BBRY) Smartphones on Road to Nowhere

April 9, 2013 12:08 PM EDT Send to a Friend
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Nokia (NYSE: NOK) and BlackBerry (Nasdaq: BBRY) smartphones, the WP8 and BB10, are drawing some curiosity in the U.S. but this isn't enough to trigger turn around in either company's stock, say analysts at MKM.

The firm recently conducted a consumer survey to gauge the smartphone landscape. Based on the data, respondents expressed interest/curiosity in BB10 (32%) and WP8 (36%), but few plan to buy the new smartphones in the next 12 months (BlackBerry (6%) or Nokia (1%)).

"BlackBerry and Windows continue to hold some mind share in smartphone consumers, but they are failing to hold a similar level of wallet share. This study confirms our belief that current BB10 and Nokia WP8 products are not differentiated enough to meaningfully gain share against Android and Apple (Nasdaq: AAPL)," said analyst Michael Genovese.

Analysts described the BlackBerry BB10 launch in the U.S. as "unnoticed."

"The ineffectiveness of BlackBerry's marketing plan is highlighted by the 63% of respondents who were completely unsure as to when the BB10 would be released in the U.S. The company has recognized this shortcoming by vowing to increase BB10 marketing spending by 50% in the current quarter, but we believe it is likely too little too late. In our view, the small window for BB10 to gain mass consumer attention around its launch has closed," said Genovese.

Genovese also said he doesn't think the Q10, which features a keyboard, will be the company's savior.

Regarding Nokia, Genoves said, "While the WP8 OS is gaining in popularity, a disturbing number of respondents (50%) who were aware that WP8 handsets were available for purchase couldn't associate a handset brand to the OS. In particular Nokia is lost in the shuffle, despite its early standing as a Microsoft partner. Only 19% of respondents are aware that Nokia has a Windows 8 phone, trailing Samsung at 26% and HTC at 21%. The lack of Nokia's brand recognition is reflected by the less than 1% of respondents who plan on buying a Nokia smartphone in the next year."

For an analyst ratings summary and ratings history on BlackBerry (Nasdaq: BBRY) click here. For more ratings news on BlackBerry click here.

Shares of BlackBerry closed at $14.67 yesterday.


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Comments

Did you notice...
D Fear on 2013-04-10 09:19:30
Mark as Spam | Reply to this comment

The profits Nokia posted Q4 2012? And more phones were sold in Q1 2013 even still!!!

Still quoting MKM Partners?
PZ on 2013-04-09 13:59:13
Mark as Spam | Reply to this comment

You do realize quoting MKM Partners the past year on BBRY has made streetinsider.com look like idiots dont you?
If you want to cover your Short position on BBRY please try presenting some more convincing lies, otherwise you're not even a joke, you're just pathetic, I read these articles for a joke...


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