OTTAWA, April 25 (Reuters) – Research in Motion (RIM.TO: Quote, Profile, Research)shares fell 3 percent on Friday after a Fortune.com story saidthat a high-speed wireless version of its BlackBerry smartphonefor top U.S. phone company AT&T Inc (T.N: Quote, Profile, Research) is facing delays.
The introduction has been pushed back as far as August fromJune, the story on Fortune magazine’s website said, citingunnamed people close to the companies. The reason for the delaywas unclear, but AT&T had worries about call quality, thereport said.
RIM and AT&T declined comment on the report, which alsosaid the delay could hurt RIM phone shipments and subscribergrowth in its second quarter ending Aug. 30.
But one analyst said the delay isn’t news, pointing to aJanuary report in which he flagged a later-than-expectedlaunch.
Canaccord Adams analyst Peter Misek downgraded RIM on Jan.11 to a "hold" rating, citing a 3G device delay until June aswell as U.S. economic weakness.
Misek wrote on March 31 that RIM’s 3G BlackBerry had justrecently been delivered to AT&T and Vodafone labs and herepeated his February forecast that the launch was now likelydelayed to August.
RIM had to work with its chip supplier Marvell (MRVL.O: Quote, Profile, Research) toresolve technical problems, said Misek. He believes thoseissues are now sorted out and that network certification, whichtakes about three months, is the last hurdle.
"I’m very, very disappointed that the market finds this asany kind of news. It’s not going to have any impact on theAugust quarter and we’ve always said this device is going to bedelayed," he said. "I’m just really surprised more peopledidn’t know about it."
Shares in Waterloo, Ontario-based RIM fell C$3.77 to end atC$122 on the Toronto Stock Exchange and dropped $3.62 to$120.02 on Nasdaq on Friday.
The phone, which Fortune.com said may be called Meteor,will likely be unveiled by RIM within six weeks, Misekpredicted.
AT&T Chief Financial Officer Rick Lindner referred to plansfor a high-speed BlackBerry with third generation, or 3G,technology on a quarterly earnings conference call earlier thisweek, but did not give a date for the launch.
"We’re just starting to see a BlackBerry 3G come out. Asthose integrated devices move to 3G, I think that will be thenext catalyst to drive stronger 3G growth," he said.
"New customers coming in today, if they are buying a phone,many times, particularly postpaid customers, they’re primarilygoing to 3G."
RIM has said it will introduce devices based on HSDPA, ahigh-speed 3G wireless technology that is popular in Europe andused by AT&T.
"Certainly going to HSDPA is something that’s veryimportant to us in the near term," Chief Executive JimBalsillie told Reuters in a February interview.
TD Newcrest analyst Chris Umiastowski speculated about thetiming of RIM 3G device shipments in a recent note that loweredhis earnings estimates and stock target.
"We believe the device is on track to be available eitherat the end of May or in June. That said, we are not yet clearon when AT&T will start selling the device," he wrote.
"Perhaps it will launch in Europe (with Vodafone) prior tohitting North American soil?…A launch of this upcoming 3Gdevice either by AT&T or Vodafone should result in asignificant number of hardware shipments within the first fullquarter of launch."
AT&T and rival carrier Verizon make up about 40 percent ofRIM’s new subscriber growth, the analyst estimated.
AT&T, the exclusive U.S. carrier for Apple Inc’s (AAPL.O: Quote, Profile, Research)iPhone, a competitor to BlackBerry, hinted at a U.S trade showearlier this month that it expects to have a 3G version ofiPhone in coming months. It did not give a specific date.
($1=$1.02 Canadian)(With additional reporting by Sinead Carew in New York;Editing by Peter Galloway)
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