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...
Eliminate costly downtime!
Find out how with Free White Paper
& enter to win a Samsung Galaxy Note

www.apc.com
Digital Life
Next Generation Data Center Is Here!
Average Rating:
Rate this article:  
BlackBerry Prices Cut Already in UK; Is It Underperforming?
BlackBerry Prices Cut Already in UK; Is It Underperforming?

By Barry Levine
March 4, 2013 11:14AM

    Bookmark and Share
Analyst James Faucette said the BlackBerry price cuts in the U.K., in addition to indicating that sales were not that strong, were positioning the BlackBerry Z10 as a mid-level device rather than as a competitor to high-end stars like Apple's iPhone and the Samsung Galaxy S III. Mid-level devices, he pointed out, have relatively low gross margins.
 



It's been just over a month since Research In Motion changed its name to BlackBerry and launched its BlackBerry 10 platform and devices. Now, following several recent developments, the question is whether the new BlackBerry is succeeding.

Two of the developments could indicate that the phone maker is not achieving its desired liftoff in momentum. At the BB10 launch on Jan. 30, AT&T, T-Mobile and Verizon Wireless all said they would offer both of the new BB10 models, the all-touchscreen Z10 and the Q10, which features a physical keyboard. Sprint was the only one of the big four U.S. carriers that did not announce it would offer the Z10 model. Some observers assumed Sprint was still deciding about the Z10, but now that company has confirmed that it will only sell the Q10.

The other bit of disappointing-for-BlackBerry news comes from the United Kingdom, where the Z10 is on sale. Two major U.K. retailers have cut the price of the phone, leading to rumors that its sales need a boost.

Carphone Warehouse, Vodafone

The U.K.'s Carphone Warehouse chain has reduced the Z10's price to 29 pounds (about $44) per month on a two-year contract, plus 29 pounds for the phone. The previous price: 36 pounds monthly with no charge for the handset.

Similarly, Vodafone is offering the Z10 for 33 pounds (about $50) per month for online orders, resulting in a 72-pound reduction in its previous pricing.

Pacific Crest analyst James Faucette told The Telegraph in London that, in addition to indicating that sales were not that strong, the pricing move was positioning the Z10 as a mid-level device rather than as a competitor to high-end stars like Apple's iPhone and the Samsung Galaxy S III.

Mid-level devices, he pointed out, have relatively low gross margins. The high level of profitability for high-end handsets has been seen as needed by BlackBerry for its long-term recovery, in part to offset losses from its service business.

The pricing adjustments follow encouraging reports in early February. A research note from industry research firm CIBC indicated that half of early purchases of the Z10 in Canada were by customers who had not previously been BlackBerry users. This meant that, in Canada, at least, BlackBerry was expanding beyond its customer base and was acquiring iPhone, Android or feature phone users.

Software Update

Last month, BlackBerry CEO Thorsten Heins had also described the launch day in Canada as 50 percent "better than any other launch day in our history" in that country. He said the sales in the U.K. were "close to three times our best performance ever for the first week of sales for a BlackBerry smartphone." (continued...)

1  |  2  |  Next Page >

 

Tell Us What You Think
Comment:

Name:

Bob Smith:

Posted: 2013-03-05 @ 3:11pm PT
They had a sale on for a few days - that's all!!



APC has an established a reputation for solid products that virtually pay for themselves upon installation. Who has time to spend worrying about system downtime? APC makes it easy for you to focus on business growth instead of business downtime with reliable data center systems and IT solutions. Learn more here.


 Digital Life
1.   Asana Revamps Mobile App
2.   Android 'Fake ID' Puts Millions at Risk
3.   FTC Wants Fix for Mobile Cramming
4.   Facebook To Force Use of Messenger
5.   OkCupid Experiments with Daters


advertisement
Apple Digital Book Settlement Set
But company still appealing decision.
Average Rating:
Radical.FM's Freemium Biz Model
Online radio startup asks for donations.
Average Rating:
Facebook Social Experiment Irks Us
Secretive test was legal, but ethical?
Average Rating:
Product Information and Resources for Technology You Can Use To Boost Your Business

Network Security Spotlight
Canadian Government Charges China With Cyberattack
The government of Canada is not happy with China. Canadian officials have accused "a highly sophisticated Chinese state-sponsored actor" of launching a cyberattack on its National Research Council.
 
Researchers Working To Fix Tor Security Exploit
Developers for the Tor privacy browser are scrambling to fix a bug revealed Monday that researchers say could allow hackers, or government surveillance agencies, to track users online.
 
Wall Street Journal Hacked Again
Hacked again. That’s the story at the Wall Street Journal this week as the newspaper reports that the computer systems housing some of its news graphics were breached. Customers not affected -- yet.
 

Enterprise Hardware Spotlight
Apple Updates MacBook Pros, Cuts Prices Up to $100
The popular MacBook Pro laptop line just got an update and a price cut of as much as $100. The MacBook Pro with Retina display now includes faster processors and double the memory.
 
Dell, BlackBerry Not Sweating Apple-IBM Alliance
IBM's recent move to partner with Apple to sell iPhones and iPads loaded with corporate applications has excited investors in both companies, but two rivals say they are unperturbed for now.
 
Watson Gets His First Customer Service Gig
Since appearing on Jeopardy, IBM's Watson supercomputer has been making a living using his super-intelligent knowledge base for business verticals. Now, Watson's been hired for his first customer service job.
 

Mobile Technology Spotlight
Collaboration Provider Asana Revamps Mobile App
Asana, a collaboration software provider started by a Facebook founder, is now out with a rebuilt native iOS mobile app. It replaces one that even the company admits was not up to par.
 
Android 'Fake ID' Puts Millions of Users at Risk
Having this fake ID is nothing to brag about, even if you are a minor. The “Fake ID” Android flaw drops malware into smartphone apps. It can steal credit card data and even take over your device.
 
Facebook: You Will Use Messenger, and You Will Like It
Starting this week, Facebook users with Android and iOS phones will be forced to use the separate Messenger app to send Facebook messages. Pending messages will still be visible in the main app.
 

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 | CRM Systems | 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.