The Canada Based smartphone company's new Priv device sees price cuts in Canada.
After quite a few years, Blackberry Ltd has reported earnings results which are quite well for the once-dead company. Even though the reports released after the launch of the Android based smartphone were comparatively satisfactory turns out that investors are more concerned about the fact that latest smartphones usually get the highest sales in the initial days of the launch. Keeping in mind that the flagship phone was in the market two weeks prior to the earnings results, the sales figures should have been higher.
However industry experts have given admirable reviews for the Blackberry Priv as it become the smartphone of the holiday season. The Canada based phone maker has stated that it will make the Priv available in over 31 more countries in a time span of three months. We know that the novel device is in demand because Wal-Mart listed it as “Out of Stock” after the first day of its release.
Despite the fact that there’s demand for the product the question arises as to why the mobile security provider organization refrained from reporting the details of the sales of Priv. Another question arises as to why carriers have put price cuts of the device all over Canada? During the holiday shopping season, many stores and carrier that were carrying the smartphone put a discount of as much as $50 to $150 on it.
The chief executive officer John Chen had openly stated initially that incase the device does not make profits for the company; it will discontinue making these products and focusing on its other businesses. Since the company did not report the sales and other details of the product in its earnings report; people have started to wonder whether the Android powered handset was even a big sensation or the business just portrayed it to be.
In the third quarter of the current fiscal year, BBRY reported that it sold over 700,000 units of the device. According to calculations, it can be concluded that if 50,000 units were sold then in the latest quarter above 7-8% total handsets might have been sold yet.
The device was priced at $700 which put it in the top phones of the industry, competing directly with Apple, Inc. and Samsung Electronics Ltd. Because Blackberry had always been one of the top sellers in the industry, it has to strategically price its product to include it as one of the popular products. This price tag has definitely been a con for the company, as many people who are aware of the organization would rather choose a brand name that is popular nowadays and pay such a hefty amount for it.
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