Where it won't work is in dropping the price on the BlackBerry Torch to $100. As reviewers back in August found, the phone had an improved interface -- possibly enough to slow customer defection -- but not enough to regain any ground with the broader public. AT&T (T) just cut the price of the Torch in half as it readies to sell newer handsets running Windows Phone 7.
Neither AT&T nor RIM will have any more luck with this tactic than Verizon (VZ) had when it dropped the price of the Microsoft (MSFT) Kin. Where constraining price might work, though, is with its new PlayBook tablet for under $500. Unlike other tablet vendors that went for premium pricing compared to the Apple (AAPL) iPad, it seems that RIM will likely either match the iPad's low-end price or slightly undercut it.
RIM will wisely first release a Wi-Fi only version of the PlayBook, which lowers manufacturing cost and price to the consumer. Yet the intelligence of that move won't offset the fact that RIM will still not ship units until sometime next year, even if it sells the product through Target (TGT) and Best Buy (BBY), as RIM co-CEO Jim Balsillie has suggested.
- RIM's Nightmare: Corporations Don't Need It After All
- Nokia Earnings: Smartphone Sales Soar, but Its Lead Is Almost Over
- 7 Management Lessons from RIM's PlayBook Tablet Announcement
- New RIM Tablet Is a Strategic Masterstroke That Ups Apple's Ante
- BlackBerry Torch Won't Burn Apple or Google
- New Samsung Tablet Is How Much? Who Set the Price -- Steve Jobs?
- HP Joins the Ranks of Vendors with Overpriced iPad Competitors