[TgeekB]

DailyTech - Google, Motorola Mobility Spending $500 Million on Moto X Marketing

Google is going to spend $500 million marketing the new Motorola X phone. They are trying to bring Moto back with a huge campaign. Will it work? Should BlackBerry do the same? Which will sell more?

[Lendo]

$500 million just doesn't sound like a lot for marketing anymore LOL

[howarmat]

For one phone i think its alot. But they have alot of extra cash to throw at it too. The Moto X will probably pretty good with rumors putting it as low as 199 OFF CONTRACT

[TgeekB]

$500 million just doesn't sound like a lot for marketing anymore LOL

It's more than Apple spent on the iPhone 5 but they are on top. The thing that gets me is how BlackBerry wants to be in the game but spend so little.

[howarmat]

It's more than Apple spent on the iPhone 5 but they are on top. The thing that gets me is how BlackBerry wants to be in the game but spend so little.

they cant spend it plain and simple. While they have lots of cash reserves they will be eating into those in the coming quarters pretty heavily since they still have 3 devices to manufacture and get out the door.

[TgeekB]

they cant spend it plain and simple. While they have lots of cash reserves they will be eating into those in the coming quarters pretty heavily since they still have 3 devices to manufacture and get out the door.

Which is a problem. Why put out more devices when the ones you have aren't selling well? They haven't learned a darned thing. Just my 2 cents though.

[Lendo]

I'm just saying it doesn't sound like a lot. Superbowl commercial 2M$/min or something close. LOL

[amazinglygraceless]

It's more than Apple spent on the iPhone 5 but they are on top. The thing that gets me is how BlackBerry wants to be in the game but spend so little.

One thing to keep in mind is the inherent risk of over-committing their available cash to marketing. If it works all is unicorns and rainbows, if it doesn't then BBRY will have lost a huge chunk of one of it's most attractive assets.

If "all options are on the table" then BBRY must consider protecting it's assets or else they become much harder to sell or partner with.

There are simply no good answers to the how much to invest in marketing question.

[Nathan Bael]

I'm glad I don't have to make these decisions. That being said, I do wish BB would either spend more on marketing, or at least have better adverts.

[cgk]

they cant spend it plain and simple. While they have lots of cash reserves they will be eating into those in the coming quarters pretty heavily since they still have 3 devices to manufacture and get out the door.

One thing to keep in mind is the inherent risk of over-committing their available cash to marketing. If it works all is unicorns and rainbows, if it doesn't then BBRY will have lost a huge chunk of one of it's most attractive assets.

If "all options are on the table" then BBRY must consider protecting it's assets or else they become much harder to sell or partner with.

There are simply no good answers to the how much to invest in marketing question.

Swings and roundabouts surely? You can take the conservative approach like Heins has but that might mean your products might never reach critical mass and you slowly bleed to death or you go for a higher risk strategy and hope that this leads to increased volume before you run out of cash. Impossible for us arm-chair generals to really know...

The problem is that to counter this we might see Apple dig into their deep pockets (samsung already spend crazy amounts), which in turn makes it harder for the little players to get noticed. Indeed, when taken in conjunction with the indicators of a slow-down in the sector, this summer could be the 'perfect storm' for some of the smaller marginal players especially in the US.

[abass]

What do you mean should BlackBerry do it the same..? BlackBerry is going to spend half of their cash on hand on advertising bb10 next year, that's 1.5B and an average of 500m per phone (Z10, Q10/Q5 - can be same adverts, and Aristo).

BlackBerry is planning on doing it already lol..

Posted via CB10

[TgeekB]

What do you mean should BlackBerry do it the same..? BlackBerry is going to spend half of their cash on hand on advertising bb10 next year, that's 1.5B and an average of 500m per phone (Z10, Q10/Q5 - can be same adverts, and Aristo).

BlackBerry is planning on doing it already lol..

Posted via CB10

Not saying I don't believe you but do you have proof?

[RubberChicken76]

It's more than Apple spent on the iPhone 5 but they are on top. The thing that gets me is how BlackBerry wants to be in the game but spend so little.

How much does BlackBerry spend?

[TgeekB]

How much does BlackBerry spend?

I'm not sure I've seen a figure. I can find them for Apple and Samsung though.

[lnichols]

they cant spend it plain and simple. While they have lots of cash reserves they will be eating into those in the coming quarters pretty heavily since they still have 3 devices to manufacture and get out the door.

Funny how they don't have any debt but have to sit on this cash. Maybe they should start running into the red a little and burn some cash, or borrow to do some advertising and keep the cash. Worse case they end up filing for Bankruptcy in a few years, but if they don't do anything on the marketing front and burn their own cash and the phones don't catch on then they will still be filing for bankruptcy at some point or have to ditch the smartphone business. It obvious that the current strategy isn't moving BB10 devices so something has to change because the "BlackBerry people" probably already bought them.

Posted via CB10

[howarmat]

Funny how they don't have any debt but have to sit on this cash. Maybe they should start running into the red a little and burn some cash, or borrow to do some advertising and keep the cash. Worse case they end up filing for Bankruptcy in a few years, but if they don't do anything on the marketing front and burn their own cash and the phones don't catch on then they will still be filing for bankruptcy at some point or have to ditch the smartphone business. It obvious that the current strategy isn't moving BB10 devices so something has to change because the "BlackBerry people" probably already bought them.

Posted via CB10

i have wondered what would happen if they did have some debt. I mean if it gets you the steam you need to push the phones and they start selling in much better numbers then why not do it. In theory you should then be making some good money and then pay off the debt pretty fast.

[aniym]

BBRY has been building up cash reserves because without it the stock price would be in freefall. The whole thing with the "billions in cash and no debt" war cries are intended to make the company look good for a takeover. I don't think management is serious about making BB10 a competitor.

[Chicago777Guy]

Looks like Google is determined to kill Apple and almost everyone else....first Nexus at 299 now this 199..If it goes at 199 then Samsung would be really worried as well.


Posted via CB10

[cgk]

Looks like Google is determined to kill Apple and almost everyone else....first Nexus at 299 now this 199..If it goes at 199 then Samsung would be really worried as well.


Posted via CB10

Pretty sure this is $199 on contact not outright price

Sent from my Nexus 7 using Tapatalk HD

[cgk]

Pretty sure this is $199 on contact not outright price

Sent from my Nexus 7 using Tapatalk HD

No appears it will be $199 off contract.... Blimey

Sent from my Nexus 7 using Tapatalk HD

[app_Developer]

No appears it will be $199 off contract.... Blimey

Ooh, if that's true it might be time to short Samsung. Ouch.

[TgeekB]

No appears it will be $199 off contract.... Blimey

Sent from my Nexus 7 using Tapatalk HD

Where did you read that. I know they said they were going to be aggressive keeping the price low but...... Wow.

[Dunt Dunt Dunt]

i have wondered what would happen if they did have some debt. I mean if it gets you the steam you need to push the phones and they start selling in much better numbers then why not do it. In theory you should then be making some good money and then pay off the debt pretty fast.

To have debt someone would have to loan them the money. Have to wonder in today's tight economy, and risk associated with the company.

Could BBRY get much of a loan?
Would they have to put up assets (patents) as collateral?
Would the Canadian Government bail them out?






Posted via CB10

[notfanboy]

No appears it will be $199 off contract.... Blimey

Sent from my Nexus 7 using Tapatalk HD

Highly improbable. Going to need a source for this one.

[thecurryman]

It's going to be made in america..... there is NO WAY that it will be $199 OFF contract....


At the lowest it could go would have to be $349, IMHO. The nexus 4 is a loss per device and it's not made in the us, if google plans on bringing moto back, even with a loss, manufacturing costs will drastically increase price. Plus, rumors state that it will be a customizable phone where you can pick how it looks ( front and back colors); that's going to add a heafty premium right there


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