New York, NY – Sales of BlackBerry Torch Have Been Unimpressive

New York, NY – Research In Motion Ltd.’s latest iPhone challenger, the BlackBerry Torch 9800, hasn’t yet made a killing where it matters the most: at the cash register.

Analysts say retail spot checks show sales of the Torch, which began in the U.S. at AT&T Inc. stores Thursday, have been unimpressive—particularly in comparison with other recent smartphone debuts.

Analysts at RBC Capital Markets and Stifel Nicolaus both put weekend sales at around 150,000 phones. In comparison, Apple Inc. said it sold 1.7 million iPhone 4 units in the first three days. To be sure, many Torch sales will likely go to RIM’s core business clients, who can be slower to adopt the latest models.

RIM declined comment; AT&T didn’t respond to requests for comment.

The plodding start isn’t great news for RIM, which is losing market share in the important North American market to snazzier rivals like the iPhone. The Torch, RIM’s first phone with a touchscreen and slide-out keyboard, comes with revamped software and a faster Web browser, which address some of the complaints against previous BlackBerry models.

But so far it’s had a limited rollout: The Torch is only available—at least for now—through AT&T for $199.99, with a two-year service contract. RIM hasn’t yet said when it will go on sale internationally or through other carriers.

BlackBerry users could also be waiting to upgrade current phones with the new operating system, rather buying an entirely new phone, analysts say. The new software is set to roll out to existing devices in the coming months and promises to make it easier for developers to offer third-party applications. The platform also makes improvements in the way BlackBerry users can tap into social networks like Facebook and media from iTunes and Windows Media Player.

Like other high-profile smartphones, the Torch has been disassembled by research firms to identify key components to help spot trends in the electronics industry. Two research firms, iSuppli and UBM TechInsights, concluded the new phone relies heavily on parts used in earlier RIM products. ISuppli said it was assembled for RIM in Mexico, though it didn’t identify what company carried out that work.

ISuppli estimated the total cost of the Torch’s components at $171, plus $12 for manufacturing. The most expensive single part of the Torch, iSuppli said, is the display and touchscreen assembly, at an estimated cost of $34.85. The screen supplier was unknown. Memory chips, supplied by South Korea’s Samsung Electronics Co., accounted for $34.25 of the Torch’s component costs, the firm said.

The chip that serves as the electronic brains of the Torch–and also provides so-called “baseband” functions to manage communications–was supplied by Marvell Technology Group Ltd., a company in Santa Clara, Calif., that primarily uses manufacturing services in Taiwan to build chips it designs. ISuppli put the price of that chip at $15.

UBM TechInsights pointed out that the Marvell chip operates at a speed of 624 megahertz, where some high-end phones have chips that operate at 1 gigahertz–providing a substantial performance advantage.