Morgan Stanley says that only 8000 units of the business-centric BlackBerry Passport and old-school BlackBerry Classic have sold in the current quarter. Morgan Stanley says that the company needs to sell a total of 2-3 million units of these new models during its 2016 fiscal year. In addition, the brokerage firm said that it is unlikely to sell the targeted $500 million in software revenue that the company has been aiming for.
In the note, Morgan Stanley said that the BlackBerry name is becoming a hard sell, even to enterprise customers. When the Passport first launched with its wide 4.5-inch 1440 x 1440 screen, and touch-enabled physical QWERTY keyboard, it sold out 200,000 units quickly. A second batch was also sold out. AT&T recently launched a specially revised version of the phone for the U.S., with rounded corners.
The BlackBerry Classic, which is also available from AT&T, brings back the design of the BlackBerry Bold 9900 but with the BlackBerry 10 OS. It features the old-school trackpad and function keys along with keyboard shortcuts. North American pre-order inventory of the phone was sold out back in December.
Morgan Stanley said on Monday that it is reiterating its $7 price target for the stock and keeping its underweight rating. BlackBerry's shares are currently trading at $9.65, off 16 cents for the day.
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