Torch sales modest, but expected

Though only available for a few days, rumblings have already begun that Research In Motion Ltd.’s (RIMM) Torch device has met with only modest sales success.
Financial analysts have pegged sales of the smart phone, which launched exclusively in the United States at AT&T Mobility (T) last week, at around 150,000 units through its opening weekend. Those results paled in comparison to the 1.7 million Apple Inc. (AAPL) iPhone 4 devices moved through its first three days, though some analysts think that comparison is unfair.
“Neither RIM nor AT&T has touted the Torch as a competitor to the iPhone,” noted Brad Akyuz, senior analyst of mobile devices at Current Analysis Inc. “For the market it’s targeting it has been successful. … I don’t think the device would have sold twice the numbers being touted had it launched at another carrier. It’s not a device that will make people want to leave their current carrier as most people know that RIM is a carrier agnostic company and the device will eventually come to their carrier.”
RIM’s stock price was trending upward last week ahead of the launch, but took a hit yesterday following the sales projections. The company’s stock continued its downward trajectory today trading down more than 1.5% at around $50 per share.
AT&T Mobility, which has announced great success in smart phone sales, though most devices at the carrier have been overshadowed by its exclusive offering of the iPhone. AT&T Mobility noted that at the end of the second quarter more than half of its postpaid customer base was using what it termed “integrated devices,” or handsets with a QWERTY or virtual keyboard in addition to voice functionality. The carrier also said it activated 3.2 million iPhones during the second quarter.
While the Torch’s sales figures are being debated, online retailer Amazon.com continues to price the device at $100 with a service contract, half the price that AT&T Mobility is asking for the device.
Keeping the faith
Akyuz noted that the more important aspect of the Torch’s launch was the unveiling of RIM’s new BlackBerry 6 operating system that he said puts the company on par with competing operating systems on the market.
“The Torch is not a revolutionary product, but an evolutionary product,” Akyuz said. “RIM has acknowledged that its user interface has lagged behind its competition, especially in the consumer space. Had the Torch and the new OS launched a couple of years ago when the Storm was released it would have been seen as a knockout combination. Instead it’s now seen as putting RIM at least on a level playing field with the other operating systems out there, which is still a good place to be.”
Akyuz added that the Torch is important to RIM as it keeps the BlackBerry faithful happy, especially those that might have been tempted to move to another OS.
Akyuz also noted that even if sales of the Torch was considered modest by some, the device maker still has a strong hold on the No. 1 position in smart phone sales in the U.S. and its carrier agnostic approach and rabid customer base will enable the company to continue to command a significant portion of shelf space at nearly every carrier.
Bold moves to U.S. Cellular
Regional wireless operator U.S. Cellular Corp. (USM) said it would begin offering RIM’s BlackBerry Bold 9650 this week, providing the carrier with a “world” phone that can connect with its domestic CDMA-based network as well as GSM/GPRS/EDGE/UMTS/HSPA networks internationally.
The device is similar to ones offered by both Verizon Wireless (VZ) and Sprint Nextel Corp. (S), but includes a handful of U.S. Cellular-specific applications like its contact backup offering, ringtone maker and navigation service. U.S. Cellular did note that the device will ship with RIM’s BlackBerry 5 operating system, but that it would be compatible with its BlackBerry 6 OS.