BlackBerry is dead – analyst

While Apple scored gains on record launch sales for its new iPhone models, shares in BlackBerry continued to tumble on Monday (23 September) leading an analyst to declare the company “dead”.

Apple added 4.4% to $488.00 on the Nasdaq after saying it sold more than nine million new versions of its iPhones over the three-day launch weekend, marking a new record for the company.

Apple predicted its fourth-quarter profit and revenue would be at the high end of its prior forecast.

Meanwhile, BlackBerry tumbled 5.90 to $8.21, extending a 17% fall on Friday (20 September) after it forecast up to a $1 billion loss in its second quarter.

The group also said that it sold about 3.7 million phones in the latest quarter, with the majority being older models and not the BB10 range.

“In 2013 and probably onwards competitive position of Apple is extremely good,” Trip Chowdhry of Global Equities Research told Sapa.

“BlackBerry is dead… Windows Surface and Phone is dead… Nokia is on life support,” added Chowdhry.

“Demand for Apple products today is much stronger than ever.”

Reuters pointed to a note titled “Train has wrecked, what now?” by analysts at Evercore Partners, who said BlackBerry would be worth more if its software businesses were split from its declining hardware business.

Reuters reported that while BlackBerry has hired advisers to look for a buyer, analysts debated whether the company is more valuable if sold piecemeal to competitors or private investors.

It said that at least 15 brokerages slashed their price targets for the Canadian firm.

With Sapa and Reuters

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BlackBerry is dead – analyst