Pierre Ferregu Bernstein Research analyst a person who is known for its dramatic style of saying one thing in optimistic manner and in the next minute he says the something in pessimistic manner. Same like the case he says about Nokia. This week was surprising even for him in a sense that he forecasts an upgrade in BlackBerry Ltd (NASDAQ:BBRY) shares on Monday and on Wednesday he downgraded the share.
It is good example that how analyst may gone wrong in this week. Many of them view Samsung Nokia and Motorola are not favorable for investment. In order to earn trading commission brokerage may influence their clients to switch their BlackBerry and Apple positions. Of course, this is very dangerous, and only after a one day when Bernstein had upgraded BlackBerry, the company decided to issue a regulatory filing that includes shocking details.
The company released a statement saying that it is in trouble in handling the size of its handset inventory because the demand of this is declining so quickly. During August quarter, BlackBerry 10 devices only contribute 29% of the total volume of BlackBerry devices sold to its end users. This figure shows the story of the company’s struggles in the market.
BlackBerry Ltd (NASDAQ:BBRY) also discloses that intense competition in Africa and Middle East affects the company financially and operationally. The company is facing the same trend in United States and all over the world where it was experienced a growth on one time.
But this situation about BlackBerry is going to be change in next months. Although, the business of the company is in decline stage but its patents will be valued as high as someone expected. BlackBerry is not good in litigation but now it is going to take action against its Asian vendors who don’t have rights to use its messaging and email patents.
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