Newsletters
News & Information for Technology Purchasers NewsFactor Sites:       NewsFactor.com     Enterprise Security Today     CRM Daily     Business Report     Sci-Tech Today  
   
This ad will display for the next 20 seconds. Click for more information, or
Home Enterprise I.T. Cloud Computing Applications Hardware More Topics...
Build Apps 5x Faster
For Half the Cost
Enterprise Cloud Computing

On Force.com
Mobile Tech
24/7/365 Network Uptime!
Average Rating:
Rate this article:  
Could $999 BlackBerry Z10 Debut Breed Sticker Shock?
Could $999 BlackBerry Z10 Debut Breed Sticker Shock?

By Jennifer LeClaire
February 11, 2013 2:23PM

    Bookmark and Share
The $999 price for an unlocked BlackBerry Z10 is way too high, said analyst Michael Disabato. In fact, he said, he wouldn't pay $1,000 for an unlocked smartphone with any brand name, BlackBerry included, because the devices are nearly obsolete as soon as you use them; the next version is always around the corner.
 



Solavei, an upstart carrier of which few have heard, is getting a big break. Solavei is the first U.S. carrier to sell the new BlackBerry Z10. But could the price tag cause so much sticker shock that it drives customers to other carriers instead? Or will an innovative business model disrupt the industry?

Solavei is selling unlocked versions of the BlackBerry Z10 for a whopping $999. Solavei has partnered with GSM Nation on the retail front to peddle the new devices. But, again, how many will line up to pay the premium?

"We believe in giving our members access to the latest phones and wireless capabilities," said Solavei CEO Ryan Wuerch. "Solavei not only gives its members the opportunity to pay less for unlimited mobile service, but even the opportunity to earn income by sharing Solavei with others."

An Outrageous Price

At $999, the BlackBerry Z10 is the most expensive unlocked BlackBerry ever. Unlocked BlackBerry devices usually fall close to the $700 mark, which is in line with the market.

Michael Disabato, managing vice president of Network and Telecom at Gartner, told us he was not buying.

"So BlackBerry is introducing its 'iPhone-killer' through some third-tier, pay-as-you go cheap mobile operator? I have never heard of this carrier. I think the price for this unlocked phone is just outrageous," Disabato said.

He painted this picture: Consumers pay $750 for a 32 GB iPhone unlocked. Consumers pay $850 for a 64 GB iPhone unlocked. That means consumers pay a $150 premium for the BlackBerry. As he sees it, the price is way too high for a BlackBerry. In fact, he said, he wouldn't pay $1,000 for an unlocked smartphone with any brand name because the devices are nearly obsolete as soon as you use them; the next version is always right around the corner.

"I don't think the Z10 is compelling enough for people to abandon Android and iOS, unless it's people who loved BlackBerry in the beginning, went to iOS because it was cool, couldn't get the features they needed, and decided to go back to BlackBerry," Disabato said. "When it comes down to it, it's the software that makes the phone."

Understanding Solavei's Model

Solavei, which bills itself as an affordable contract-free mobile service provider, also sells the iPhone. Both the BlackBerry Z10 and the iPhone are offered at $49 a month for service. That service includes unlimited voice, text and data.

Launched Sept. 21, Solavei has already attracted more than 120,000 members nationwide. Instead of spending millions of dollars on advertising for brand awareness or using retail stores to distribute its services, Solavei relies on its members to share the service and directly compensates them for their efforts. In its first two months, Solavei paid out more than $2 million in member commissions.

Here's how it works: Members who choose to share the Solavei Mobile Service with others through its social commerce platform can use the money to offset their monthly bill and even pocket a few bucks.

The plan allows members to earn $20 per month for every three members -- called a "Trio" -- they or someone directly connected to them signs up for mobile service. When members have three Trios, the income generated is greater than their monthly plan cost of $49, essentially making their mobile service free. Members can continue to increase their recurring monthly income as they sign up more people and their network beyond them grows.
 

Tell Us What You Think
Comment:

Name:

noelle:

Posted: 2013-02-14 @ 1:15pm PT
Way TOO MUCH!!!!!!!! SO OVERPRICED!!!!!!!

bb10_rules_all:

Posted: 2013-02-12 @ 1:27pm PT
This is the most powerful and innovative smartphone on earth and the history of smartphones. $999 is a steal.

homer:

Posted: 2013-02-12 @ 7:29am PT
This is completely stupid. The carrier is charging a price they think the market will pay. It is selling for $1700 on EBay after all.

mr_zed10:

Posted: 2013-02-12 @ 7:09am PT
This analyst needs to do some actual analysis.

"BlackBerry included, because the devices are nearly obsolete as soon as you use them;"

Blackberry is the ONLY manufacturer who does not constantly release new devices unlike Apple who has a yearly release, and Android phones which are monthly.

""So BlackBerry is introducing its 'iPhone-killer' through some third-tier, pay-as-you go cheap mobile operator?"

Blackberry never stated this is the iPhone killer, these analysts need to quit assuming every new phone by a manufacturer of ANY name who is offering a smartphone is an iPhone killer.

Newsflash, the iPhone is not on the smartphone throne, last I heart, Samsung has over taken iPhone (fact).



Salesforce.com is the market and technology leader in Software-as-a-Service. Its award-winning CRM solution helps 82,400 customers worldwide manage and share business information over the Internet. Experience CRM success. Click here for a FREE 30-day trial.


 Mobile Tech
1.   Nokia X Phones Had Identity Crisis
2.   GoTenna: Work-Thru for Dead Zones
3.   Microsoft Axes Android Phones
4.   Apple-IBM Deal Weighs on BlackBerry
5.   Google Adds Features to Wallet App


advertisement
Android SMS Worm on the Loose
Malware lets bad actors cash in.
Average Rating:
Review: Microsoft's Surface Pro 3
Is it a tablet and laptop replacement?
Average Rating:
Nokia X Phones Had Identity Crisis
'Gateway' devices didn't resonate.
Average Rating:


advertisement
Product Information and Resources for Technology You Can Use To Boost Your Business

Network Security Spotlight
Juniper DDoS Solution Aims at High-IQ Networks
In the face of more complex attacks, Juniper Networks is boosting its DDoS Secure solution to help companies mitigate the threats with more effective security intelligence throughout the network fabric.
 
Large-Volume DDoS Attacks Hit Record in 2014
The number of distributed denial-of-service (DDoS) attacks set a record in the first half of 2014, according to a report by Arbor Networks. The number of attacks over 20 GB/sec doubled.
 
U.N.: Nations Hide Rise in Private Digital Snooping
Governments on every continent are hiding an increasing reliance on private companies to snoop on citizens' digital lives, the U.N. human rights office says, with grave concerns about privacy.
 

Navigation
NewsFactor Network
Home/Top News | Enterprise I.T. | Cloud Computing | Applications | Hardware | Mobile Tech | Big Data | Communications
World Wide Web | Network Security | Data Storage | Small Business | Microsoft/Windows | Apple/Mac | Linux/Open Source | Personal Tech
Press Releases
NewsFactor Network Enterprise I.T. Sites
NewsFactor Technology News | Enterprise Security Today | CRM Daily

NewsFactor Business and Innovation Sites
Sci-Tech Today | NewsFactor Business Report

NewsFactor Services
FreeNewsFeed | Free Newsletters

About NewsFactor Network | How To Contact Us | Article Reprints | Careers @ NewsFactor | Services for PR Pros | Top Tech Wire | How To Advertise

Privacy Policy | Terms of Service
© Copyright 2000-2014 NewsFactor Network. All rights reserved. Article rating technology by Blogowogo. Member of Accuserve Ad Network.