T-Mobile US, Inc.
) trade-in program -- primarily for
) customers -- further confirms the latter's rapidly declining
popularity. The deal promised BlackBerry users a lucrative $200
for those who opt to trade in their devices for a new
T-Mobile's trade-in deal worked in the company's favor as the
number of devices exchanged was fifteen times the usual. However,
the program proved pricey for BlackBerry as 94% of Blackberry
users shifted to rivals like
) iPhone or
To make the deal more appealing, T-Mobile offered an extra $50
concession to customers who exchanged for a BlackBerry Q10 or
Z10. However, this offer failed to boost Blackberry Q10 and Z10
sales as most of the customers opted for other mobile brands.
We believe that the Canadian handset manufacture is losing
traction in the mobile market at a rapid pace. Thus, the company
needs to introduce high-end devices to counter the growing
competition in the handset manufacturing business On the other
hand, T-Mobile's trade-in program was aimed at limiting customer
Recently, BlackBerry announced its plans to launch
budget-friendly full-touch Z3 smartphone in April, this year. The
BB10-based smartphone is the first product of the BlackBerry and
Foxconn partnership. The 3G device will initially be introduced
in Indonesia and will later be launched in other countries,
integrated with 4GLTE technology.
In the third quarter of fiscal 2014, BlackBerry sold 4.3
million smartphones as against Samsung and Apple's 83 million and
50 million smartphones, respectively. At present, the company is
writing down its unsold inventories and has incurred an operating
loss of nearly $5 billion.
BlackBerry currently has a Zacks Rank #3 (Hold).
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