BlackBerry shares dive on reports for video games

  Shares of BlackBerry fell nearly 8 percent on Friday after reports of a flat response to the launch of its new Z10 smartphone in the vitally important U.S. market.

The well-reviewed device, whose success is essential if BlackBerry is to reestablish itself as a power in the smartphone when you like this kind of the cheap video games industry, finally hit U.S. store shelves early on Friday, nearly two months after being formally unveiled.

Several analysts and media reports found the debut lackluster.

"This morning we visited and called stores to survey early demand for the Blackberry Z10," said Hudson Square Research analyst Daniel Ernst. "We found no lines, no signage announcing the launch, and clerks told us they had very few pre-orders."

The uninspiring turnout hurt BlackBerry shares, which ended the day down 7.7 percent at $14.91 on the Nasdaq. The Canadian company's Toronto-listed shares fell 8 percent to close at C$15.19.

Many analysts argue that the Z10's performance in the hyper-competitive U.S. market could well decide whether BlackBerry can turn around its faded fortunes.

BlackBerry, which is already selling the new touch-screen smartphone in about 25 countries, aims to make the Z10's new operating system the clear No. 3 platform in the market, a realistic but still difficult challenge, analysts say.

"I think the U.S. will be a challenge for BlackBerry more so than some of the countries where they have already launched," said Morningstar analyst Brian Colello.

"The momentum for iPhone and Android is too strong here. I still think they can win over some enterprise users, but the U.S. is a country where BlackBerry's brand has been greatly diminished."

BlackBerry once ruled the U.S. smartphone market, but it has fallen badly in recent years as devices powered by Apple's iOS and Google's Android operating systems dominate sales both in North America and overseas.

BlackBerry's new BB10 operating system will now slug it out with Microsoft's Windows 8 platform to secure the No. 3 spot in the market.

By most accounts BlackBerry has a tough fight ahead. It not only has to win back the hearts and minds of consumers, but the timing is hardly ideal, with the Samsung Galaxy S4, expected to go on sale by the end of April, generating a lot of buzz. "We believe BlackBerry's launch in the strategically important U.S. market will run into intense competition," said Raymond James analyst Steven Li in a note to clients on Friday.

Despite the buzz around other devices, some still expect the Z10 to do well in the United States.

Best Buy's head of mobile sales, Scott Anderson, said the retailer has been able to gauge demand for the Z10 based on sales at Best Buy stores in Canada.

"We have fairly consistently increased the allocation of it to our stores as it has got more and more buzz. Even though we aren't releasing any numbers, we do put this in the realm of a serious iconic launch," he said, adding that BlackBerry has a window of opportunity over the next month before the new HTC and Samsung smartphones hit store shelves in the United States. Genachowski, who charted a centrist course in his chairmanship, defended his tenure, which also included the FCC's rejection of a landmark 2011 merger bid between U.S. No. 2 wireless carrier AT&T Inc and fourth-largest provider T-Mobile USA, a unit of Deutsche Telekom. The bid was dropped Looked like this iPod tv box android 4.0 definitely scary after the Justice Department sued to block the deal.

In pushing against the merger, Genachowski stood up against the prospect of a duopoly in the wireless market by AT&T and the largest carrier, Verizon, analysts say, as it retained T-Mobile as a competitor and protected the third-biggest player Sprint from being overwhelmed.

"This sector has always been and will always be characterized by a robust debate," Genachowski said.

"Some people say the commission has gone too far, some people say the commission hasn't gone far enough. What we've been focused on are the right actions to drive the economy and to improve the lives of the American people."

Genachowski came to the FCC after advising Obama on telecommunications policy and working at several tech investment firms. He had previously served as chief counsel for former FCC Chairman Reed Hundt.