Blackberry Cuts the Price of its Z10 Handset

Heidi Speare July 16, 2013 1

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Four months ago, BlackBerry has released its flagship device – the Z10 smartphone. This company has been confident that this device will boost the company to a higher level in order to be competitive with its biggest rivals. This didn’t happen on the field and BlackBerry cut the price of its latest Z10 handset. This device is now cheaper than other low-budget smartphones meant for markets with low income.

Those who still want to spend money on BB Z10, it can be purchased from AT&T and Verizon for $99. This smartphone has been discounted for 50% and left us asking what happened with the company for making it this cheap. Since its launch date, this smartphone was selling for $199. Some sources are saying that this device could be found for $49 at Best Buy or Amazon. According to BB representatives, this move is completely normal saying that it’s the right time for price adjusting.

Maybe this response was totally expected, as CEO Thorsten Heins held a shareholders meeting with big disappointment on its face. It was said that a shareholder asked him about this Z10 smartphone addressing it “a disaster move”, Heins has disagreed by words but his visual presentation didn’t sound like that.

This forced price dropping isn’t the only problem that is causing headaches. This year’s Q1 resulted in $84 million loss for the company with disappointing 6.8 million smartphone shipments. BlackBerry OS market share noted a drop to 2.9% from already low 6.4% that BB OS has enjoyed during Q1 of 2012. According to Kantar World panel ComTech, BB’s overall smartphone market share has been standing still at 0.7% in the U.S. for the first three months of this year. This is down from 4.6% that this company enjoyed during Q1 in 2012.

blackberry z10

When this was brought up to Heins, he responded that this company is in the second phase of the whole transition of three steps. The third step is returning to profits and all the investors need to stay calm and patient. He added that BlackBerry’s transformation is on its way and there is no short-cut or any other easier way for doing that. There are many challenges in front of this company. He stays realistic about their transformation and absolutely positive about heading towards success.

It seems that Heins is the only person in the company that still has hope for success. We will see the results when BlackBerry reaches its final (third) phase of transformation and if it returns to profits. Maybe the discount of this smartphone has something to do with it.

Share with us in comments your thoughts about the discount and will BlackBerry make any progress in near future?

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