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New Blackberry Product Takes Nation By Storm

Posted on: Friday, 21 November 2008, 15:00 CST

Hundreds of people lined up at some Verizon Wireless stores on Friday to purchase the new BlackBerry Storm.  The device is Research in Motion’s first touch-screen phone, and could represent a competitive threat to Apple Inc.’s iPhone.

At Verizon’s mid-town Manhattan store, more than 200 people had waited in line to buy the new phone, many of whom were turned away after the store ran out less than an hour after opening. Police restored order after the frustrated customers caused a disturbance. 

Verizon said hundreds of other customers were in lines outside its east coast stores, but that it had "plenty of phones" and was expecting additional shipments.

"If a store has already run out, it's evidence of pent up demand," Verizon spokeswoman Brenda Raney told Reuters, adding that it was too soon to say if the stores were selling out of the Storm.

"We don't normally have people line up,” she added.

Anthony Lewis first tried to get the Storm at electronics stores near New York's Bryant Park, and had even put his name on a list ahead of the Storm’s Friday debut.  However, even that wasn’t enough.

"I had two pre-orders at Best Buy and Circuit City. Now I'm here and I'm hearing it's sold out," Lewis, 28, of Brooklyn, New York, told Reuters from a Verizon store near Bryant Park.

"I guess 8 a.m. in the morning is too late."

A Verizon employee told customers if they ordered the phone online or in the store, they would receive the Storm in five to seven days.

Verizon Wireless is a joint venture of Verizon Communications Inc and Vodafone Group Plc.  On Thursday, Vodafone said it was struggling to meet demand for the Storm, which it officially launched November 14.  The company, who is providing the phone at no charge to British customers who sign a contract, said it had thousands of pre-orders.

According to analysts, the Storm’s launch was likely responsible for the move in shares of Verizon and AT&T, the exclusive U.S. carrier for the iPhone, on Friday.  Both stocks have been volatile during the past few months due to wider economic concerns.

"We've heard nothing but good things about it. It's a small bright spot in a really bleak world.," Charter Equity Research analyst Ed Snyder told Reuters, referring to the Storm.

Snyder said he had even "heard from some competitors who thought it was pretty impressive."

Verizon Wireless has high hopes that the Storm will play a key role in its holiday sales this year.  The company heavily pushed four different phones last Christmas, but is focusing this year on the Storm.

Both the Storm and iPhone cost $200 for subscribers who sign up for a two-year service contract.  Both come equipped with a built-in camera and music and video players.

However, the buzz over the Storm’s launch pales in comparison to that of Apple Inc.’s iPhone.  During the iPhone’s debut, Apple fans camped out days to ensure they were among the first to have the new device.   

In contrast, smaller lines of about 20 were seen at Verizon stores in San Francisco at 8 AM.   At one store, an employee estimated that the store had sold roughly 100 phones since 7 o'clock.

Fred Vassard, a systems administrator, owns both versions of the iPhone, but isn’t happy with its capabilities.  Instead, he wants a Storm for both work and personal use.

"It's a touch-screen so it has more real estate, the reviews were so-so, so I'm hoping I can find some positives in it. But the phone part will work better," he told Reuters while standing in line in San Francisco's financial district.

Shares of Research in Motion closed up 6.12 percent in Friday trading.

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On the Net:

• BlackBerry Storm
• Verizon Wireless
• Vodafone Group Plc

Source: redOrbit Staff & Wire Reports

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