Analyst retail checks appear to support initial reports of strong demand for the flagship BlackBerry Z10 handset in the UK, where the device first went on sale on 1 February.
"Initial feedback we have received from distributors on the first days of sales is particularly positive," says Bernstein analyst Pierre Ferragu, who raised his target price on BlackBerry shares from $12 to $22.
"We have grown more confident in the likely success of the BlackBerry 10 launch, supported by low channel inventories, strong operator support and material pent-up demand."
Ferragu added: "Even if the long-term prospects for the platform are uncertain, we believe all is in place for BlackBerry 10 to enjoy a great debut."
Also sharing details of their own retail checks, Barclays analyst Jeff Kvaal said they had surveyed UK BlackBerry vendors over the weekend, and sales were strong with some stores selling out and others only having limited stock remaining.
"Our recent store checks suggest that initial sales of the BlackBerry Z10 are off to a solid, if not healthy start in the UK. We believe this is a function of strong sell-through versus limited sell-in," said Kvaal.
Kvaal also went so far as to say: "We believe BlackBerry's Z10 is off to a better start than the Lumia 920. The solid initial demand is a positive step in our view, despite the number of challenges that remain."
It has, however, been noted that the retail checks are preliminary and can only function as indicators. It is also not yet clear if the sell-outs are a result of stronger than expected demand or simply limited device supply.
'Very encouraging'
BlackBerry CEO Thorsten Heins has also said that sales of the company's Z10 handset in the UK have been "beyond expectations". Heins told AP: "White is sold out already. The black is hard to stock up again. It's very encouraging. I won't share the number, because I need to verify it, but we are getting a substantial number of users moving from other platforms to BlackBerry. That is an interesting data point."
Heins has also expressed disappointment in the fact that the Z10 will only be going on sale in the important US market in mid-March. Heins has said he is well aware of the need for BlackBerry to regain its footing in that market in order to be successful. "We need to win back market share to be relevant. We have to be aggressive in the US market."
BlackBerry, formerly known as Research In Motion, took the wraps off the first BlackBerry 10 handsets at launch events in six different cities on 30 January. The Z10 is an all-touch device with a 4.2-inch display, 1 280x768 resolution at a density of 356ppi. The device is powered by a 1.5GHz dual-core CPU and 2GB RAM. There is also 16GB storage on the Z10, and a microSD slot. It features an 8MP, 1080p rear-camera and a 2MP, 720p front-facing camera. The handset is also near-field communication-capable, and LTE-capable models will be available in specific regions. BlackBerry also revealed the Q10 handset which features a traditional qwerty keyboard, but which will only go to market in April.
BlackBerry has said all South African carriers will carry the BlackBerry 10 handsets, but local pricing and availability are yet to be confirmed. However, 8ta has indicated the Z10 will be available from its stores from 1 March.
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