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BlackBerry’s risky pricing strategy has backfired

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BlackBerry Pricing Strategy Analysis
So BlackBerry missed the BlackBerry 10 volume expectation by about 800,000 units over the last quarter. It shipped 2.7 million and the consensus was probably around 3.5 million. There are many possible reasons for the miss, ranging from the app ecosystem to brand perception. One of the most likely problems is the one that it's too late for BlackBerry to fix: pricing. Both the Z10 and the Q10 were priced very close to iPhone 5, smack in the middle of the luxury segment. BlackBerry rolled the dice and opted to cling to luxury status the brand used to enjoy back in 2010. This decision reverberates right down to the BlackBerry Q5, which is priced about 40% below the Q10. This means that the "budget" Blackberry costs more than $400 without subsidies.

 

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