U.K. Phone Retailers Offer Cheaper BlackBerry Z10 Tariffs A Month After Launch — Soft Demand For First BB10 Handset?

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After taking so long to transition to its next-gen OS platform, the company formerly known as RIM has an awful lot riding on its first BlackBerry 10 handset, the Z10. The handset launched at the end of January in the U.K. and early February in Canada (and is due to make its official U.S. debut this month). Not a great sign, then, that some U.K. phone retailers appear to be cutting the price of Z10 tariffs, a mere month after launch — suggesting demand isn’t as strong as hoped, and that the device isn’t as competitive against the high end of Android and iOS as BlackBerry needs it to be.

Both Carphone Warehouse and Vodafone have slashed tariffs, according to the Telegraph. It also appears that Phones 4u is offering cheaper deals now. BB10 is BlackBerry’s attempt to turn around its sliding smartphone fortunes by offering a device to compete with the likes of the iPhone and Samsung’s Galaxy SIII. BlackBerry’s global smartphone marketshare fell to just 3.5 per cent in Q4 2012, according to analyst Gartner, down from 8.8 per cent in Q4 2011, while Samsung and iOS took 52 per cent of all smartphone sales in Q4 2012.

Carphone Warehouse initially priced the BlackBerry Z10 from £36 per month on pay monthly contract, bundling the cost of the handset into that tariff. It is now offering the phone from as little as £29 per month, although that tariff includes a £29 up-front free for the handset. The Telegraph also says Vodafone has introduced a new web-only deal for the Z10, costing £33 per month (this tariff also requires an up-front fee of £129). Phones 4u is also offering the Z10 on a £29 per month contract (again with a £29 charge for the handset), having initially launched the phone on contracts starting at £36 per month. It is also offering even cheaper tariffs, of around £20 per month, but with a much higher up-front fee for the device.

The Telegraph quotes James Faucette, an analyst at Pacific Crest, who said the tariff cuts move the Z10 away from the highest margin segment of the smartphone business. “We believe that meaningful price cuts so soon after launch, while probably at the initial discretion of the carriers, is likely to relegate the Z10 to being a mid-tier device with very low gross margins,” he said.

BlackBerry has been making a lot of noise about Z10 sales but hasn’t backed up its hype with any hard numbers, saying only that demand had exceeded expectation and that the Z10 is selling in “large numbers“. We’ve reached out to BlackBerry, Carphone Warehouse and Phones 4u for comment on the tariff reductions and will update this story with any response.

Asked how sales were going in the Z10′s launch market, the U.K., at the Mobile World Congress trade show in Barcelona last week, BlackBerry’s U.K. & Ireland MD Rob Orr also shied away from sharing any numbers, saying he was unable to provide much detail ahead of BlackBerry’s quarterly results.

Early sales in the U.K. have been “very positive”, he told TechCrunch, adding: “I’m in a quiet period so I’ll caveat my statement with the fact that our fiscal year ends on [March 1st] and we publish results on the 28th. Regulated from a quiet period perspective I can’t share too much detail but I’m very pleased with the results, the partners are very pleased with the results. Take a look at some of the feedback on Phones 4u’s site or Vodafone’s site are very positive.

“The feedback from our enterprise customers has been brilliant. Really really good. They love what we’ve done with BES 10, they’re aligned with the approach that we’re taking, they’re cracking on with all their internal trials and their user testing and all the stuff that enterprises do before they do mass rollouts. So I’m really pleased. Couldn’t really have asked more from the support I’ve had in the market.”

Expect to get more concrete details on exactly how positive (or not) the BB10 launch has been when the company announces its fiscal Q4 and fiscal full year results at the end of this month.

While the introduction of cheaper monthly tariffs may not help BlackBerry’s bottom line in the long run, it may help to drive a few more Z10 sales in the short term to help buoy up its results. In the mean time, all the vague, non-quantifiable statements aren’t helping dispel the sense that RIM isn’t yet doing enough to dig itself out of the smartphone doldrums.

BlackBerry Z10 sales estimates cut significantly

While the BlackBerry Z10 released among a crowd of curious and eager onlookers, most of which were excited to see BlackBerry’s newest offerings, the general public doesn’t seem to be too crazy about the new Z10 according to Canaccord Genuity analyst T. Michael Walkley, who cut the sales forecast of BlackBerry’s new smartphone from 1.75 million units to just 300,000.

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Walkley trimmed his estimates based on mixed initial sales of the Z10 along with a later-than-expected launch in the US. Currently, the Z10 is only available in Canada and the UK, with a US launch on all major carriers sometime next month. However, once the Z10 launches in the US, Walkley isn’t expecting a lot of reception, saying that he anticipates carriers to not have large inventories of the device.

BlackBerry announced the Z10 earlier this month on February 5, where the company also introduced the Q10, which is another new touchscreen smartphone but with a physical keyboard on board. These two phones, along with the new BlackBerry 10 operating system, are the company’s answers to moving their business forward and attempt to bounce back from six straight quarters of losses.

Of course, Walkley mentioned that BlackBerry still faces stiff competition from iOS and Android this year. Both Apple and Samsung will most likely launch new smartphones this year: the rumored iPhone 5S and the Galaxy S IV, both of which are said to be arriving with some pretty mean features on board.

[via Investors.com]


BlackBerry Z10 sales estimates cut significantly is written by Craig Lloyd & originally posted on SlashGear.
© 2005 – 2012, SlashGear. All right reserved.

BlackBerry Z10 Review: Not Good Enough

Everybody knows what’s at stake for BlackBerry. The Z10 is its shot to stop its considerable bleeding and shut everyone up. But launching a brand new OS with brand new hardware isn’t easy. And it’s even harder to match expectations when both have been delayed again and again. More »

Blackberry Z10 costs about $154 to make

Have you ever wondered how much it actually costs to make a Blackberry Z10 device (or any smartphone in general)? CNN Money has provided the estimated pricing of each of the Blackberry Z10′s components, and how much it all adds up to. The teardown is provided by UBM TechInsights and they go through the cost of the display, processor, cameras, storage space, battery, communication chips, ram, and other components.

Blackberry Z10 costs about $154 to make

The 4.2-inch display for the Z10 costs around $26.50. The 1.5GHz dual-core Qualcomm processor costs about $23.50. The 8MP rear-facing camera and 2MP front-facing camera totals about $15. The 16GB internal storage costs around $9.00. The other components, including the battery, communication chips, and RAM total $21.00. Finally, the casing, as well as the other small electronics included in the Z10 total around $59.00. All of this adds up to $154.

The Blackberry Z10 is slightly more expensive to create compared to the iPhone 5, which costs about $139 to make. But in the Z10′s defense, the Z10 has a bigger, higher resolution screen, more RAM, and a bigger battery. Blackberry hasn’t released how much the unsubsidized price for the Blackberry Z10 yet, so we can’t really determine how much profit Blackberry makes off each phone.

The Blackberry Z10 won’t launch in the U.S. until March, and it has been confirmed, at least by Verizon Wireless, that the device will retail with a subsidized price of $199.99. Blackberry is hoping that with its new OS overhaul, it will be able to compete in a market that it once used to dominate. While many people are loving the new UI that comes with the Blackberry 10 OS, it will still be hard for Blackberry to compete with the likes of Apple and Samsung, who is rumored to be announcing its new, highly-anticipated Samsung Galaxy S IV on March 15th.

[via CNN Money]


Blackberry Z10 costs about $154 to make is written by Brian Sin & originally posted on SlashGear.
© 2005 – 2012, SlashGear. All right reserved.

Jim Balsillie sells his 5.1 percent stake in BlackBerry

BlackBerry's Jim Balsillie

Jim Balsillie, the former co-CEO of Research in Motion (now known as BlackBerry), has been until recently the third-largest shareholder in the company with 5.1 percent ownership. According to Financial Post, however, he’s cut his stake in BlackBerry altogether, now reporting a grand total of zero shares. Balsillie stepped down as co-CEO in January and resigned from the board in March; this next big move away from the company will likely lead to speculation that his interest or faith in BlackBerry’s future is waning, though his successor certainly would beg to differ.

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Source: Financial Post

BlackBerry Z10 teardown tips Samsung inspiration

What’s in a phone? If it’s the BlackBerry Z10, then it’s plenty of Qualcomm gadgets and a surprising mixture of components already seen used in Samsung’s Galaxy S III, with a new teardown of the BlackBerry 10 smartphone suggesting the Canadian firm may well have cribbed some design inspiration from South Korea. UBM TechInsights whipped off the Z10′s covers and dug around the parts bin raiding inside, with Qualcomm apparently ousting one-time BlackBerry best-buddy Texas Instruments for the most part.

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Where TI was previously a mainstay for processors and chips in BlackBerry phones, the Z10 instead looks to Qualcomm for its 1.5GHz dualcore processor, 3G/LTE modem, GPU, power management chip, GPS, and more. TI is relegated to providing the WiFi/Bluetooth/FM combo chip, while Samsung donates the flash memory and RAM.

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Perhaps more interesting than the origin of the components is the decision process BlackBerry (nee RIM) seemingly made in how they were combined, something which is supposedly strongly reminiscent of Samsung’s assembly strategy with the Galaxy series. Various parts – from the processor that’s also in the LTE Galaxy S III, to the new WCD9310 audio codec in the same phone – seem to indicate that BlackBerry certainly knows who its key rivals are.

“It’s not certain if these decisions the designers made on what semiconductors, ICs and other modules to use were by design or by accident” UBM concludes, “but based on the relative success of the Samsung Galaxy S3, it isn’t a bad model to draw from.”

If you’re more interested in how the BlackBerry Z10 – and BlackBerry 10 as a platform – performs when the phone is in one piece, check out our full review.

[via Gizmodo]


BlackBerry Z10 teardown tips Samsung inspiration is written by Chris Davies & originally posted on SlashGear.
© 2005 – 2012, SlashGear. All right reserved.

Home Depot says no to BlackBerry 10: iPhone a go

When it comes to the business segment, it would seem that no company has more to lose than BlackBerry – as proven this week by stock prices falling at news the Home Depot will soon be switching to iPhone. The yet-unofficial announcement that Home Depot would be dropping their company-wide use of BlackBerry devices for Apple’s mobile phone option will have the company formerly known as RIM servicing around 100,000 devices fewer once the full switch is made. It would seem that stocks of BlackBerry dipped down as far as 6 percent in early trading today while the stock appears to be a bit more on the rebound as noon arrives.

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The big switch will affect Home Depot store managers and corporate employees on the whole, while the general store employee population are not currently smartphone-carrying members, so to speak. When you work at Home Depot ranked any member Store Manager or above, a corporate smartphone plan goes into effect. With the brand new reveal and release of the BlackBerry 10 mobile OS, it would appear that the home repair and construction supply company is not suitably impressed.

Employees that work on the floor – those that you the customer would interact with on the daily, behind the counter and helping you load up planks of wood into your odd carts – will continue to use Motorola smartphones. According to inside sources speaking with Apple Insider, the iPhone switch will not affect the some 60,000 employees working with the “rugged” Motorola phones currently in use by floor employees.

This is not the first company to have tossed BlackBerry aside over the past few months, but given that Home Depot is the fifth largest retailer in the entire modern world, it’s certainly a significant one. Keep your eyes on the prize, BlackBerry, and make sure you prove yourselves to the enterprise universe real quick! Have a peek at the timeline below to see other recent BlackBerry happenings to keep track of the magic!

[Image via Martin Hajek]


Home Depot says no to BlackBerry 10: iPhone a go is written by Chris Burns & originally posted on SlashGear.
© 2005 – 2012, SlashGear. All right reserved.

Super Hexagon makes its way to BlackBerry 10

Here’s something we weren’t expecting, at least not this soon. Terry Cavanagh, the developer behind VVVVVV and Super Hexagon, has brought his newest creation to BlackBerry’s newest platform. In other words, Super Hexagon is now available from BlackBerry World for BlackBerry 10 devices (only the BlackBerry Z10 at this point).

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Cavanagh said that a BlackBerry 10 port actually wasn’t something he had originally lined up, but a friend who helped port the game to Android wanted to do the same for BlackBerry 10, as he maintains the unofficial Blackberry port of openFrameworks. Cavanagh had no qualms of porting the game to yet another device and decided to give it a shot.

Cavanagh also says that a BlackBerry tablet version of the game (read: PlayBook) may come along eventually, but there’s no guarantees. In the meantime, Z10 owners in the UK and Canada can grab the game for $2.99. Users in the US will sadly have to wait until March to get their hands on a new Z10, but that’s just right around the corner.

If you’re not familiar with Super Hexagon, it’s essentially an action game that has you guiding a small cursor through gaps that appear randomly from six sides (hence “Hexagon”), but you have to act quick, since the barriers come at you pretty fast. Just like with VVVVVV, the game is meant to be an incredible challenge. It’s currently available for iOS, Android, Windows, Mac, and of course, BlackBerry 10.


Super Hexagon makes its way to BlackBerry 10 is written by Craig Lloyd & originally posted on SlashGear.
© 2005 – 2012, SlashGear. All right reserved.

BlackBerry won’t be releasing any more handsets in Japan

In light of lackluster demand, BlackBerry (previously RIM) has elected to forego BlackBerry sales in Japan. According to Reuters, this is due to an extremely small market share in the nation of only 0.3-percent, a drastic fall from the already tiny 5-percent it previously held. Because of this, the burden of creating a Japanese version of its BlackBerry OS isn’t worth it.

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While Reuters couldn’t reach the company for comment, the folks over at Engadget did get a response from a company spokesperson who confirmed the rumors. In the response, the spokesperson said: “Japan is not a major market for BlackBerry and we have no plans to launch BlackBerry 10 devices there at this time. However, we will continue to support BlackBerry customers in Japan.”

On Wednesday, we reported that BlackBerry 10 had a wildly successful launch day in Canada, where the company broke its own records by 50-percent. In addition, BlackBerry has reported that its sales in the UK are nearly thrice the best initial week sales of any other BlackBerry handset.

BlackBerry 10 isn’t set to release in the United States until near the end of March, with the Q10 not slated to hit shelves until several weeks after the Z10. Many feel this is a bad move on BlackBerry’s part, something that will ultimately hurt it, especially given the long duration over which BlackBerry 10 has been discussed and has been in development.

[via Engadget]


BlackBerry won’t be releasing any more handsets in Japan is written by Brittany Hillen & originally posted on SlashGear.
© 2005 – 2012, SlashGear. All right reserved.

Nikkei: BlackBerry to stop selling phones in Japan, no longer able to justify the cost (updated)

It looks like Japan won’t be a part of BlackBerry’s BB10 launch plans now or anytime in the foreseeable future. According to a report from Nikkei, BlackBerry has decided to stop selling phones in the country, at least in part because it wasn’t able to justify the cost of making the necessary language modifications to its new operating system. As Nikkei also notes, however, BlackBerry has seen a particularly steep drop in market share in Japan, where it now stands at just 0.3 percent. We’ve reached out to BlackBerry about the news and are awaiting comment.

Update: We’ve received a statement from BlackBerry confirming that it has no plans to launch to launch BB10 devices in Japan at this time, although it adds that it will continue to support its customers in the country. The complete statement is as follows:

We are in the process of launching BlackBerry 10 globally in key markets and we are seeing positive demand for the BlackBerry Z10 in countries where it has already launched. Japan is not a major market for BlackBerry and we have no plans to launch BlackBerry 10 devices there at this time. However, we will continue to support BlackBerry customers in Japan.

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Source: Reuters