BlackBerry is looking to reclaim lost glory with its latest device, but the future isn't looking good for the company—retailers recently slashed the price of the BlackBerry Z10.
Just four months after its U.S. market launch, AT&T and Verizon Wireless cut the price of the BlackBerry Z10 from $199 to $99 with a two-year contract. Aside from those two network carriers, retailers Amazon and Best Buy also slashed the price of the BlackBerry 10-powered device from $199 to $49 with contract.
The steep discount from the network carriers and retailers might seem normal because discounting is a common smartphone marketing strategy. Samsung, the leading smartphone producer in the world, recently cut the price of its Galaxy S3 before the launch of the Galaxy S4, but BB Z10's case is different. Discounting smartphone prices is normal, but cutting the price a mere four months after release may suggest the smartphone is not selling well.
Despite the sudden price drop, an unnamed BlackBerry spokesman told the Wall Street Journal that the company believes that it is already the perfect time to cut the price of the device. The spokesman insisted the price drop had nothing to do with sales, claiming it was just a preparation for the release of the company's next device.
"Now is the right time to adjust the price," said the spokesman. "It's part of life cycle management to tier the pricing for current devices to make room for the next ones. This is just one element of our marketing strategy that will ensure we remain aggressive in a very competitive market landscape."
The discounting of the Z10 could be compared to the company's PlayBook tablet, which was also discounted by the company only a few months after it was released, two years ago.
After retailers cut the price of the BlackBerry tablet, the company admitted the weak sales of the PlayBook. Last month, BlackBerry chief executive Thorsten Heins said that the company won't be updating the PlayBook to its new operating system.
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