Prices dropping for BlackBerry Z10

A while back, we heard it was the company's best ever UK launch. So why are prices for the BlackBerry Z10 already dropping?

We didn't go wild over it when we got our hands on it for a good amount of time, primarily due to the lack of 'wow' in the design and disappointing selection of apps. But the company was talking up sales in the weeks after its UK launch, which suggested all being rosy in the BlackBerry garden for the first time in months.

But according to the Daily Telegraph, Carphone Warehouse has cut the price of the Z10 on the 3 network to £29 up front on a £29 per month, two-year contract. Previously the contract cost £36 per month with a 'free' handset, which means a £160 reduction. It added that Vodafone has also introduced a web-only deal for the Z10 of £33 per month, meaning a £72 price cut over the life of the contract. Not huge cuts, but reductions for a new handset always get alarm bells ringing.

According to analyst James Faucette of Pacific Crest: 'The case for [BlackBerry’s] recovery has been that in the long run, the company could return to selling high-end handsets that would feature enough profitability that handset profits could more than offset long-term declines in the highly profitable service 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.'

It wouldn't be right to write off BlackBerry's latest mobile platform and hardware so soon though. Like all new platforms, it might take time for momentum to build. And with a recent (internal) company report showing that one third of British Z10 buyers were not previously BlackBerry owners, it might actually be winning the battle to show BlackBerry can compete with the Apples and Samsungs of this world.

Source: Daily Telegraph

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