Feeds

T-Mobile pulls BlackBerry products from US retail stores

Stocking product that no one buys deemed 'inefficient'

Internet Security Threat Report 2014

As BlackBerry struggles to regain its footing following the disastrous second quarter of its fiscal 2014, US wireless carrier T-Mobile has announced that it will no longer carry the Canadian firm's smartphones in its retail stores.

T-Mobile executive VP of corporate services David Carey told Reuters that demand for BlackBerry handsets among consumers has been low, which meant "keeping stock in the retail distribution system was inefficient."

The carrier will still supply BlackBerry kit for customers who want it, but the devices will be shipped direct through the mail and won't be available for pickup at retail locations.

Carey said this model suits T-Mobile's BlackBerry customers, most of whom are businesses who don't make their handset purchases through stores.

If T-Mobile understands who its BlackBerry buyers are, however, BlackBerry itself seems to have only just now got the memo. Last Friday it warned investors that it expects to write down as much as $960m on unsold inventory of its touchscreen-only Z10 handsets, while most of its unit sales in the quarter were of older devices running BlackBerry 7 – the kind long favored by corporate types.

BlackBerry now says it will pare down its planned product line to focus on the enterprise and "prosumer" markets, rather than mainstream consumers. But the shift may come too late to assuage its business customers, many of whom are already moving to Android or iOS.

BlackBerry has tentatively agreed to a $4.7bn buyout by a Canadian consortium led by Toronto-based Fairfax Financial Holdings that will take the company private, but Reuters reports that other investors are skeptical that Fairfax will be able to raise the necessary capital.

"We believe the Fairfax initiative is unlikely to come to fruition and see the next valuation floor for the stock at $5," one Bernstein analyst has reportedly told his clients.

BlackBerry's shares are currently trading at around $8. If they sink much lower, and no viable rescue plan emerges to slow the company's freefall, soon T-Mobile won't be the only company to stop carrying BlackBerry product in its stores. ®

Internet Security Threat Report 2014

More from The Register

next story
Bladerunner sequel might actually be good. Harrison Ford is in it
Go ahead, you're all clear, kid... Sorry, wrong film
Musicians sue UK.gov over 'zero pay' copyright fix
Everyone else in Europe compensates us - why can't you?
I'll be back (and forward): Hollywood's time travel tribulations
Quick, call the Time Cops to sort out this paradox!
Megaupload overlord Kim Dotcom: The US HAS RADICALISED ME!
Now my lawyers have bailed 'cos I'm 'OFFICIALLY' BROKE
Euro Parliament VOTES to BREAK UP GOOGLE. Er, OK then
It CANNA do it, captain.They DON'T have the POWER!
Forget Hillary, HP's ex CARLY FIORINA 'wants to be next US Prez'
Former CEO has political ambitions again, according to Washington DC sources
prev story

Whitepapers

Seattle children’s accelerates Citrix login times by 500% with cross-tier insight
Seattle Children’s is a leading research hospital with a large and growing Citrix XenDesktop deployment. See how they used ExtraHop to accelerate launch times.
Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
How to determine if cloud backup is right for your servers
Two key factors, technical feasibility and TCO economics, that backup and IT operations managers should consider when assessing cloud backup.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Business security measures using SSL
Examines the major types of threats to information security that businesses face today and the techniques for mitigating those threats.