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  1. sanjayjp99's Avatar
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    Exclamation Is $199 blow out sale was big mistake ???

    I still doubt it that BB has 1B of Z10ís or that was just gimmick to bring down stock price so PW can afford it, since I donít see any massive sale on them. (except $199 US sale which last only few days). Do you think they sold all Z10ís worth of 1B in few days. If they really have them they should try to sell them in development countries (India, Indonesia and other where actual BB fan lives) where ordinary consumer keep their phone for at least 3 years. $199 sale was just another mistake, do we think that sale can bring up BB position in US market (never). US market is prime market where people can afford high-end smart phone thatís the reason that iPhone is still number One in US. I give you one example if you convert $199 in INR its roughly around 12000 Rs even if you add tax on that and sell for 15000 Rs. I bet you all Z10ís will sell in two days in India same for other countries where iPhone 5S sell for 45000 Rs and Galaxy S4 for 36000 Rs.
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    gokulesh (12-11-2013) 
  2. Searchy's Avatar
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    I bought one. At $199 it's a steal, so no, BlackBerry did not make a mistake.

    Posted from my BlackBerry Z10
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  3. RTK90's Avatar
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    I dont know. At this point MORE users with Blackberry product in there hand seems like a good idea, no blowout sale means potentially MANY more devices have to be written off. Better to get SOMETHING for them then nothing and have them sitting around, plus I'm sure they still turned a profit with the ones they sold
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  4. GTiLeo's Avatar
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    whats funny the USA can't really afford high end prices, not with their unemployment rate, but that doesn't stop folks from doing it and over extending themselves because somethign is pushed on them.

    anyways, i don't see it as a big mistakeat all i'm sure the surplus was not fabricated to drive the price down it happens when your management is stupid and over produce
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    BK_NY_RAY (12-11-2013) 
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  5. sanjayjp99's Avatar
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    Quote Originally Posted by Searchy View Post
    I bought one. At $199 it's a steal, so no, BlackBerry did not make a mistake.

    Posted from my BlackBerry Z10
    congratulation..

    are you coming from iPhone or Android or just a BB fan like us coming for OS 7 ?
  6. bekkay's Avatar
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    Quote Originally Posted by sanjayjp99 View Post
    I still doubt it that BB has 1B of Z10ís or that was just gimmick to bring down stock price so PW can afford it, since I donít see any massive sale on them. (except $199 US sale which last only few days). Do you think they sold all Z10ís worth of 1B in few days. If they really have them they should try to sell them in development countries (India, Indonesia and other where actual BB fan lives) where ordinary consumer keep their phone for at least 3 years. $199 sale was just another mistake, do we think that sale can bring up BB position in US market (never). US market is prime market where people can afford high-end smart phone thatís the reason that iPhone is still number One in US. I give you one example if you convert $199 in INR its roughly around 12000 Rs even if you add tax on that and sell for 15000 Rs. I bet you all Z10ís will sell in two days in India same for other countries where iPhone 5S sell for 45000 Rs and Galaxy S4 for 36000 Rs.
    They had already written off the Z10 inventory, so it was recorded as an expense in the prior period AFAIK. Now, every Z10 sold contributes to the revenue without contributing to COGS.
  7. Davidro1's Avatar
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    Good points.

    Maybe the $1B write-down was for several items not just a batch of phones.
    Quote Originally Posted by sanjayjp99 View Post
    I still doubt it that BB has 1B of Z10ís or that was just gimmick to bring down stock price....
    ....should try to sell them in development countries (India, Indonesia ....
    .... sell for 15000 Rs. I bet you all Z10ís will sell in two days in India same for other countries where iPhone 5S sell for 45000 Rs and Galaxy S4 for 36000 Rs.
    It's also possible the $1B write-down was deemed so big in order to leave room for some profits in following quarters.

    Posted via CB10
    laketrout73 likes this.
  8. alan510's Avatar
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    I agree that the same wasn't a mistake but the OP's point about selling in markets where BlackBerry remains popular is a good one as well. I don't see why the discount was limited to the US. Must be a reason behind it but I'm not on the inside at BlackBerry so I don't know why it was restricted to the States.

    Posted via CB10
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    gokulesh (12-11-2013) 
  9. Joao Oliveira's Avatar
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    I think it was the right strategy... Blackberry had a bunch of Z10s sitting in the warehouses, so this is a good way of getting a lot of people with BB10 on their hands, promoting the brand and new operative system, and reducing the loss of the written down Z10s
    8800 -> 8320 -> 9500 -> 8900 -> 9650 -> 9700 (now my sister's) -> 9780 (now my GF's) -> 9900 -> Q10
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  10. Bbnivende's Avatar
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    I think OP is saying is that American consumers are being subsidized where as developing country consumers are not.

    I think there is more going on behind the scenes here such as promises to US distributors to take back unsold phones or purchases by US carriers canceled. Hence unsold inventories sitting in a USA warehouse.

    Sent from my Nexus 7 using CB Forums mobile app
  11. sanjayjp99's Avatar
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    Quote Originally Posted by Bbnivende View Post

    I think there is more going on behind the scenes here such as promises to US distributors to take back unsold phones or purchases by US carriers canceled. Hence unsold inventories sitting in a USA warehouse.
    I believe this should be the story for rest of the word, why US only for blowout sale??
  12. PlayBookUserMT's Avatar
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    What none of you seem to account for is the cost of importing foreign goods into other countries. It's possible the prices in countries in Europe and Asia are so expensive because of terrifs associated with the import of foreign goods, making it more sensible to sell at a discount in the United States where at $200 they can make money back on the devices and increase their market share in a market that's currently underperforming.

    Between Canada and the United States there is the North American Free Trade Agreement. I'm not positive this covers phones, but if it does, then it's much cheaper to sell the device in the United States and allows them to make a greater profit off of the discounted devices than say selling them in India would.


    Quote Originally Posted by sanjayjp99 View Post
    I still doubt it that BB has 1B of Z10’s or that was just gimmick to bring down stock price so PW can afford it, since I don’t see any massive sale on them. (except $199 US sale which last only few days). Do you think they sold all Z10’s worth of 1B in few days. If they really have them they should try to sell them in development countries (India, Indonesia and other where actual BB fan lives) where ordinary consumer keep their phone for at least 3 years. $199 sale was just another mistake, do we think that sale can bring up BB position in US market (never). US market is prime market where people can afford high-end smart phone that’s the reason that iPhone is still number One in US. I give you one example if you convert $199 in INR its roughly around 12000 Rs even if you add tax on that and sell for 15000 Rs. I bet you all Z10’s will sell in two days in India same for other countries where iPhone 5S sell for 45000 Rs and Galaxy S4 for 36000 Rs.
    Quote Originally Posted by alan510 View Post
    I agree that the same wasn't a mistake but the OP's point about selling in markets where BlackBerry remains popular is a good one as well. I don't see why the discount was limited to the US. Must be a reason behind it but I'm not on the inside at BlackBerry so I don't know why it was restricted to the States.

    Posted via CB10
    Quote Originally Posted by Bbnivende View Post
    I think OP is saying is that American consumers are being subsidized where as developing country consumers are not.

    I think there is more going on behind the scenes here such as promises to US distributors to take back unsold phones or purchases by US carriers canceled. Hence unsold inventories sitting in a USA warehouse.

    Sent from my Nexus 7 using CB Forums mobile app
    Quote Originally Posted by sanjayjp99 View Post
    I believe this should be the story for rest of the word, why US only for blowout sale??
    Last edited by PlayBookUserMT; 12-11-2013 at 12:33 AM.
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    GTiLeo (12-11-2013) 
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  13. Unbiased Tech's Avatar
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    #13  

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    It should've been close to like this to begin with in my opinion. Lower prices means more user base, means more initiative for developers, meaning more apps (official or native). Regardless of that, its always good to have great sales, I mean it was around Black Friday/Cyber Monday.
    vicky_235235 likes this.
  14. sanjayjp99's Avatar
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    Thread AuthorThread Author   #14  

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    Quote Originally Posted by PlayBookUserMT View Post
    What none of you seem to account for is the cost of importing foreign goods into other countries. It's possible the prices in countries in Europe and Asia are so expensive because of terrifs associated with the import of foreign goods, making it more sensible to sell at a discount in the United States where at $200 they can make money back on the devices and increase their market share in a market that's currently underperforming.

    Between Canada and the United States there is the North American Free Trade Agreement. I'm not positive this covers phones, but if it does, then it's much cheaper to sell the device in the United States and allows them to make a greater profit off of the discounted devices than say selling them in India would.
    Then Why iPhone and Galaxy S4 sell for same price as US in India????
  15. siddharth's Avatar
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    i think it was a good idea, more people buy z10's more sales in app world, once people understand how intuitive bb10 is they would probably be more inclined to buy Bbry devices. Pricing is the key in developing markets like India, q5 should have been close to 199$ here. Nokia Lumia 5xx/6xx sells for under $199 apart from tons of Samsung and Micromax devices.

    btw prices in india

    z10 : MRP Rs. 26000 | Street Price : Rs. 18-20000
    q10 : MRP Rs 38000 | Street Price : Rs 25000
    iPhone 5S 16gb : Mrp Rs. 53500

    Even with such high prices of the 5S, I see more 5S's than blackberrys. Oh btw Gold 5S holds a premium and is selling for Rs 60000 for 16gb
    Blackberry Bold 9000 : 5.0.0.434
    Blackberry Bold 9700 : 6.0.0.600
    Blackberry Torch 9810 : 7.1.0.1033

    Currently using

    Blackberry Z10 : 10.2.1.1925

    iPhone5S Space Grey 32gig : iOS 7.0.4 Jailbroken \m/
    vicky_235235 likes this.
  16. Karajorma's Avatar
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    #16  

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    Quote Originally Posted by sanjayjp99 View Post
    I believe this should be the story for rest of the word, why US only for blowout sale??
    Cause BlackBerry seem to love tilting at windmills. Why the hell do they keep wasting so much effort on cracking the US market? Especially when there are markets like China which they could easily dominate in but haven't made the slightest effort to move into.

    I've got no issue with them doing a big sale in the US, but they should also do a blowout in the UK or somewhere else where BlackBerry is still popular. Increase the market share in a country that it might actually make a difference. Once you are number 1 somewhere it becomes easier to be seen as a big player.
  17. Taigatrommel's Avatar
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    I also don't think it was a mistake. Maybe they could've advertized it more, however I am from Germany and don't really know how much/what kind of advertising they did for the sale. Around here the Z10 dropped heavily in price anyways, it started at 630 EUR back in March and right now it sits around 260 EUR. Last week I saw some special action pricing the white Z10 for 220 EUR.
    It's a great device for that price, however it still faces serious competition because some former flagships also dropped heavily and are in similar pricing segments.

    Posted via the awesome Blackberry Q10
  18. vicky_235235's Avatar
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    yh its d best thought by u!! wish z10 hits @sale in indian market.
  19. njblackberry's Avatar
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    Quote Originally Posted by GTiLeo View Post
    whats funny the USA can't really afford high end prices, not with their unemployment rate, but that doesn't stop folks from doing it and over extending themselves because somethign is pushed on them.

    anyways, i don't see it as a big mistakeat all i'm sure the surplus was not fabricated to drive the price down it happens when your management is stupid and over produce
    You should stick to discussing things you know about. What would that be?

    In nine days you will hear about more writedowns due to overproduction and miserable global sales. You can them blame other conspiracies that are in your head.

    As far as the US economy and not buying underwhelming, overpriced BlackBerrys, I don't see the iPhone market crumbling. No, no one wants your beloved BlackBerry.

    You really don't have any idea about anything outside of your home country, so you should stay with that. Hockey perhaps?
    MichealBerry and milo53 like this.
  20. robsteve's Avatar
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    #20  

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    Quote Originally Posted by sanjayjp99 View Post
    Then Why iPhone and Galaxy S4 sell for same price as US in India????
    Because the iPhone is made in China, which does not have a free trade agreement with any of the Countries.

    Posted via CB10
  21. BBUniq01's Avatar
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    #21  

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    Quote Originally Posted by Bbnivende View Post
    I think OP is saying is that American consumers are being subsidized where as developing country consumers are not.

    I think there is more going on behind the scenes here such as promises to US distributors to take back unsold phones or purchases by US carriers canceled. Hence unsold inventories sitting in a USA warehouse.

    Sent from my Nexus 7 using CB Forums mobile app
    When I was in Malaysia, I was looking for a tablet for my parents. I could not get over how much the phones and tablets cost over there. And the monthly fees. Makes me appreciate being here in the US. Totally understand OP's point.

    Posted via CB10
  22. paper_monkey's Avatar
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    Quote Originally Posted by sanjayjp99 View Post
    Then Why iPhone and Galaxy S4 sell for same price as US in India????
    Because Apple controls the price on everything they sell. Basically no markup/profit margin for retailers to eat into for a sale. Apple controls the market value of their devices and dictates who sells it for what and when.

    They have a broad enough product base that they can take the odd loss but they have priced everything high enough to minimize loss.

    Posted via CB10
  23. edu3110's Avatar
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    #23  

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    I believe the $199 was a nice move by BlackBerry. What's a big mistake? Not having unlocked Z30 for sale in the US.

    Post via my AWESOME Q10! BBM Channel: C12140D
    justsomebbuser likes this.
  24. WiseManPL's Avatar
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    #24  

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    Quote Originally Posted by sanjayjp99 View Post
    I still doubt it that BB has 1B of Z10’s or that was just gimmick to bring down stock price so PW can afford it, since I don’t see any massive sale on them. (except $199 US sale which last only few days). Do you think they sold all Z10’s worth of 1B in few days. If they really have them they should try to sell them in development countries (India, Indonesia and other where actual BB fan lives) where ordinary consumer keep their phone for at least 3 years. $199 sale was just another mistake, do we think that sale can bring up BB position in US market (never). US market is prime market where people can afford high-end smart phone that’s the reason that iPhone is still number One in US. I give you one example if you convert $199 in INR its roughly around 12000 Rs even if you add tax on that and sell for 15000 Rs. I bet you all Z10’s will sell in two days in India same for other countries where iPhone 5S sell for 45000 Rs and Galaxy S4 for 36000 Rs.

    Seriously, you think they sold phones worth 1B in stock in a few days on a market they barely exist? That's not even remotely close. And no, they should sell, seed them first and foremost to the markets where they can make big $$$$ off of them.
    I would seed those written-off Z10s to Fortune 500.
  25. Searchy's Avatar
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    Quote Originally Posted by sanjayjp99 View Post
    congratulation..

    are you coming from iPhone or Android or just a BB fan like us coming for OS 7 ?
    Thanks, I already had a Z10 so the second one I bought to gift.

    Posted from my BlackBerry Z10
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