1. needforbbx's Avatar
    so this should explain it:

    During a roundtable with media at BlackBerry headquarters last week, Chen said the company had done much of the internal cost-trimming he had targeted when he took charge in November, and further cuts would come within its sales channels.

    "Now I am onto the next part of the cost (cutting), which is the distribution costs of our product," he said at the time.

    Chen didn't provide details but hinted that some of the company's carriers and distributors were getting a significant cut on the devices sold, which was squeezing its profit margin

    full article: BlackBerry severs sales ties with T-Mobile US | Reuters
    Last edited by needforbbx; 04-02-14 at 10:29 AM.
    04-02-14 09:55 AM
  2. pkcable's Avatar
    Similar story ran on CB.... (last night, BEFORE their story )

    BlackBerry and T-Mobile U.S. to end licensing agreement | CrackBerry.com
    04-02-14 10:02 AM
  3. anon1727506's Avatar
    All part of the "shrinking pains" that BlackBerry is going through right now.

    Problem is while T-Mobile is a small carrier in the US.... It's still much bigger than many carriers around the world. So it may come down to most markets only having one or maybe two source for BlackBerry devices. And if today BlackBerry is saying we aren't going to use you as a partner anymore, then a few months from now that carrier is going to announce the end of support for BES at the end of current contracts, which I think still requires carrier support and implementation.

    Either way competition is going away, and those left with the contracts are going to know that they are free to recoup some of the cost associated with the BlackBerry platform. Which will make any chance of BlackBerry growing again, much more difficult.
    04-02-14 10:10 AM
  4. cgk's Avatar
    The main 'distribution cost' of bb10 devices is that they sit in inventory in warehouses for months unloved and then have to written down - Chen is simply reflecting the reality of having the infrastructure of a multi-national player but the sells of a small regional player.
    04-02-14 11:21 AM

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