[notfanboy]

So I read about this budget LG Optimus L1 II phone will be introduced in emerging markets. It will run Jellybean, will have BBM, and the price is $95 off contract in countries like Vietnam and Russia.

LG announces Optimus L1 II: this is what a $95 unlocked Android phone looks like | Android Central

It's a cheap phone with cheap specs and nothing I would consider buying for myself. However for those who are hooked on BBM, and who also want to participate in the latest app fads like Instagram and Vine, this is a now an option. This is the kind of price point that is needed to compete in today's emerging markets. There will be many other phones like this in response to the pricing pressure.

I don't see how BlackBerry can even play in this space. Should they just concede the hardware business and hope that BBM takes off?

[a1s2d3f4g5]

It looks like that's what BlackBerry is doing. They still have a chance with high-end hardware. But they will never be able to sell enough units to compete in the low-end segment.

One option would be to license the BB10 software, but that may cannibalize the hardware sales.

The problem with relying on BBM is there are no revenues attached to that app. The good news is BlackBerry has about two years' worth of cash to work a sustainable business model.

Posted via CB10