“Sales of the BlackBerry Z10 are meeting expectations and the data we have collected from our retail and carrier partners demonstrates that customers are satisfied with their devices,” says BlackBerry President and CEO Thorsten HeinsBy Gadjo Cardenas Sevilla
After successfully launching the new BlackBerry Z10 and now readying to launch the BlackBerry Q10, BlackBerry is fighting hard to be competitive and sustain its comeback. So when analysts from Detwiler Fenton issued a statement yesterday claiming higher than usual return rates for the BlackBerry Z10 handsets, BlackBerry quickly refuted the claims and is now asking for a full scale inquiry from the Security and Exchange Comission as well as the Ontario Securities Commission.
BlackBerry CEO Thorsten Heins also released a statement which reads, "Sales of the BlackBerry Z10 are meeting expectations and the data we have collected from our retail and carrier partners demonstrates that customers are satisfied with their devices. Return rate statistics show that we are at or below our forecasts and right in line with the industry. To suggest otherwise is either a gross misreading of the data or a willful manipulation. Such a conclusion is absolutely without basis and BlackBerry will not leave it unchallenged."
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Detwiter, Fenton and Co. then released a counter statement claiming, “We are confident in our research methodology and we welcome any regulatory inquiry. Detwiler Fenton is not the only research provider publishing similar reports regarding customer reactions, sales, and returns of the BlackBerry Z10. It should also be noted that neither the Research Analyst nor any officer or director of Detwiler Fenton has any financial interest in BBRY.”
This is not the fist time analysts have issued statements on companies and products that have directly impacted a company's performance in the stock market as well as altered public perception. BlackBerry is doing the right thing in being proactive and challenging these reports about the perceived return of the Z10. BlackBerry shares took an 8% loss in trading yesterday following the release of the Detwiter report. Detwiter has also been historically critical of RIM, so their statement could be construed as another hit job on BlackBerry.
Below is the full release from BlackBerry regarding their desire to investigate the reports.
WATERLOO, ONTARIO–(Marketwired – April 12, 2013) – BlackBerry® (NASDAQ:BBRY)(TSX:BB), a world leader in mobile communications, today said it would seek Securities and Exchange Commission and Ontario Securities Commission review of a false and misleading report about retail return rates for the Company’s new BlackBerry Z10 smartphone.
“Sales of the BlackBerry® Z10 are meeting expectations and the data we have collected from our retail and carrier partners demonstrates that customers are satisfied with their devices,” said BlackBerry President and CEO Thorsten Heins. “Return rate statistics show that we are at or below our forecasts and right in line with the industry. To suggest otherwise is either a gross misreading of the data or a willful manipulation. Such a conclusion is absolutely without basis and BlackBerry will not leave it unchallenged.”
BlackBerry and Verizon Wireless, the largest U.S. carrier, on Thursday refuted claims from research and investment firm Detwiler Fenton that BlackBerry Z10 devices were being returned in unusually high numbers. Detwiler Fenton refused to make either its report to investors or its methodology available to BlackBerry, even after the Company said the firm’s findings were “absolutely false.”
BlackBerry Chief Legal Officer Steve Zipperstein said: “These materially false and misleading comments about device return rates in the United States harm BlackBerry and our shareholders, and we call upon the appropriate authorities in Canada and the United States to conduct an immediate investigation. Everyone is entitled to their opinion about the merits of the many competing products in the smartphone industry, but when false statements of material fact are deliberately purveyed for the purpose of influencing the markets a red line has been crossed.”
Zipperstein said BlackBerry would present its formal request to U.S. and Canadian regulators in the next several days.
About BlackBerry
A global leader in wireless innovation, BlackBerry® revolutionized the mobile industry when it was introduced in 1999. Today, BlackBerry aims to inspire the success of our millions of customers around the world by continuously pushing the boundaries of mobile experiences. Founded in 1984 and based in Waterloo, Ontario, BlackBerry operates offices in North America, Europe, Asia Pacific and Latin America. BlackBerry is currently listed on the NASDAQ Stock Market (NASDAQ:BBRY) and the Toronto Stock Exchange (TSX:BB). For more information, visithttp://www.blackberry.com.