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BlackBerry CEO says there will be no cheap handsets for now

BlackBerry Z10

BlackBerry struggled a lot when iPhone and Android came into the smart phone world. The company came down to a loss from a profit margin that it is finding very difficult to achieve today. The company did release an all new platform called the BlackBerry 10, and a new smart phone to go with it, called the BlackBerry Z10. But it had trouble pushing this device to customers in the emerging markets. And that trouble is not going away anytime soon.

There are literally thousands of Android smart phones in the market which you can get for less than a hundred dollars, unsubsidized. When such is the competition, BlackBerry’s Z10 will have a hard time getting back its market share. But does the company have any plans for releasing a cheaper smart phone? Well, apparently, that is not what the company wants.

The company’s CEO Thorsten Heins says that the company is not “getting into the 50-, 60-buck segment,” reports Bloomberg. That is “not BlackBerry,” he says. Heins adds that this does not result in value for the company. “Understand where you are playing and resist being talked into segments that you know will not serve your purpose and will not result in shareholder value.”

Android Authority has made a list of some of the highlights from a question-and-answer session at a conference in BlackBerry’s Waterloo, Ontario home town. The highlights are as follows:

  • BlackBerry is focusing on launching flagship products first. Even in emerging markets like India and Indonesia, the company is banking on a trickle-down effect, in which more affluent flagship device users are seen to influence other users in their purchase decisions.
  • The Z10 sold out in India only after two days, even as it was priced at an unsubsidized US$800. Heins says BlackBerry was prepared with at least five days of stock when the Z10 launched on February 26, but is “now scrambling to reload those channels.”
  • Heins adds that BlackBerry is launching all its new devices with LTE capability. These will have “the whole 10 yards,” and will be “more geared towards those price bands where people need to be.”

Source: Android Authority

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