Stormy BlackBerry Sales?

Meta Data: Stormy BlackBerry Sales?

The BlackBerry Storm is no iPhone. But it's not the great failure some had predicted, either.

In a Dec. 17 research note, RBC analyst Mike Abramsky reported that 33% of Storm owners described themselves as "very satisfied" with their phones. In contrast, 77% of iPhone owners surveyed by researcher ChangeWave in July 2007, when Apple (nasdaq: AAPL - news - people ) first released the handset, characterized themselves as "very satisfied." Though low, the Storm results are in line with the satisfaction ratings for owners of other just-released phones, Abramsky wrote. (See "Smart-Phone Calling.")

Even so, a good number of Storm owners plan to return the phone. In a December survey from ChangeWave, 2% of respondents said they were "very likely" and 7% said they were "somewhat likely" to return the device. The reasons for returns: low battery life, touch-screen and difficulty of use. In a sign of how divisive the Storm's screen is, users that liked the device listed its touch technology, large screen and sharp image resolution as their favorite features.

Typically, 1% to 2% of owners of a particular phone return the device, making the Storm figures "higher than average," but "not alarming," according to Abramsky. He estimates that BlackBerry maker Research In Motion (nasdaq: RIMM - news - people ) sold 300,000 to 400,000 Storms in the third quarter. RIM is expected to address the phone-return issue Thursday when it reports third-quarter results.

Most Storm owners are smart-phone devotees, according to Abramsky, with 31% of buyers identifying themselves as prior BlackBerry owners and 29% as prior Palm (nasdaq: PALM - news - people ) Treo owners. That trend could have ramifications for Palm, which will release its fiscal second-quarter earnings Thursday.