In a way I'm kind of glad it's being delayed. I am so excited to read about the rumors, slams and all the drama with the ups and downs. This has been the best entertainment I had in a while and I think I will be board when it comes out. Don't get me wrong I want it as bad as everyone else. I just love all the excitement!
Any Storm hopeful in the colonies who's taken a gander at Vodafone's pricing scheme this week is probably strongly considering packing a couple duffel bags with the bare essentials they need to survive and moving to the UK to strike out on a new life -- a life filled with cheap Storms. Not so fast, though -- is it conceivable to think that Verizon could go the same route? At first glance, you might think that the Storm's cachet as RIM's flashiest, highest-end device to date would be enough to lure in customers by the droves at any price, but with the enormous price pressure placed on the industry by a $199 iPhone 3G in a heavily-overlapping target demo, rumor has it that Big Red's looking at a severe subsidy to meet or beat its crosstown rival. Analysts are thinking (wishfully, we suspect) that a $99 Storm isn't entirely out of the question if Verizon wants to sell an insane number of 'em through the holidays, but just how long would it take to recoup that kind of loss?
I'm hearing rumors of a St. Louis, MO Storm launch event sometime in the real near future. The earliest date I have heard so far is next Tuesday. I will let you know if I hear anymore.
Most likely the phone will launch with a $70 MIR (like all of the other VZ BB's out right now) so that would put the phone at $169.99 before rebate, which doesn't seem as crazy. For the same reason, I can see the phone launching for $269.99 so after rebate it is at the $199 iPhone price point. I guess we'll see...
UConn Huskies
1999 & 2004 National Champions
2009 Final Four
I do not see why everyone is getting so upset with Verizon for pushing back the launch date. They have not announced one, so how can they push it back. There has been speculation, and target launch dates. But neither RIM nor Verizon have announced an official launch date. It will be here when it gets here. Also, most people don't read these blogs like we do.
I do not see why everyone is getting so upset with Verizon for pushing back the launch date. They have not announced one, so how can they push it back. There has been speculation, and target launch dates. But neither RIM nor Verizon have announced an official launch date. It will be here when it gets here. Also, most people don't read these blogs like we do.
March 2009 is fine with me. NE2 kicks in then. I'd like to see it sooner, so the Storm can have a new software release before I get one.
I do not see why everyone is getting so upset with Verizon for pushing back the launch date. They have not announced one, so how can they push it back. There has been speculation, and target launch dates. But neither RIM nor Verizon have announced an official launch date. It will be here when it gets here. Also, most people don't read these blogs like we do.
From my view taking calls in the VZW call center, I'd rather the bugs are worked out of the phone before its release than push it out the door and have thousands of unhappy people with a phone with bugs. This happened with the release of the 2nd gen iPhone. Also, look at phones like the Samsung Glyde. Its been out for quite some time now, but it is on the shelves for a few days because of some major bugs that need worked out of it. Do you think what happened with the Glyde is a huge black eye for Samsung and even VZW? I'd rather see the bug free version of the Storm hit the streets.
I am no longer an employee of VZW, I left on good terms and still think VZW is the best network in the U.S. and most helpful CSR's in any industry.
VZW is trying to get old BB Curve and Pearl inventory out. There are too many left. Thats another reason for the date being pushed back and the current devices being rediculously cheap.
We already received the silicone cases for the Storm. They look nice! Size is almost the same as the curve.
The touch interface feels like a button as the screen depresses a bit. People were testing with their eyes closed and say it feels almost identical to typing on their blackberry curve. A touchscreen that feels like a true QWERTY keypad? I haven't played with one myself, but can't wait.
OCTOBER 31, 2008, 3:06 PM
Verizon mulls heavily-discounted BlackBerry Storm
By Scott Moritz
Free. That’s Vodafone’s (VOD) recently-unveiled price for the hotly-anticipated touchscreen BlackBerry Storm from Research in Motion (RIM) in the United Kingdom.
In a sign of just how desperate phone companies are to lock customers in to lengthy contracts, Verizon’s (VZ) wireless partner is willing to subsidize the Storm – which sells for about $500 without a calling plan – in order to lure subscribers in England.
Though a final decision has yet to be made, Verizon is considering the same strategy for the Storm’s U.S. debut next month, according to an industry source familiar with the discussions. Another person close to the company says it’s unlikely the Storm will be free.
Verizon declined to comment on its pricing plan for the Storm.
The fact that Verizon is even considering a free phone highlights the competitive pressure created when AT&T (T) started selling a heavily-subsidized Apple (AAPL) iPhone for $199.
Most industry analysts expect the Storm, which has received favorable reviews, to be priced at or below the iPhone.
While Verizon would like to use its exclusive Storm deal to gain an edge in the smartphone market, selling it for free “would be breaking new ground for Verizon,” said Roger Entner, an analyst with Nielsen IAG’s . “It’s likely that they will put it at $150 and maybe $99 if they want to ship massive volumes during the holiday.” At either price, the Storm would be heavily discounted.
Verizon has come up short on blockbuster phones over the past year and a half as the iPhone has become the icon of the smartphone market. AT&T has been a driving force in the U.S. wireless market thanks to the iPhone, which pulls in an average $95 per month. But that drive has also come at a steep price to Ma Bell, which forks over $375 upfront for every iPhone sold. That cost the company $900 million in the third quarter.
For RIM, the Storm represents its biggest step yet into the consumer market as it tries to derail the success of the iPhone. One major challenge is to get devotees of BlackBerry’s physical keyboard to embrace the clickable touchscreen keypad on the Storm. The iPhone’s onscreen keyboard has presented some difficulties for many typists.
So far, Verizon hasn’t had much success with its touchscreen devices. But the Storm, if it’s a hit, could finally establish Verizon as a player in the red-hot touchscreen market. What’s more, it could not only entice new customers, but also convert old lower-paying customers to more expensive contracts. Each Storm subscriber will have to sign up for a BlackBerry e-mail and calling plan, which currently starts at $80 a month.
But one commentary of the article stated...
Not buying all the rumors at all.
Verizon just re-affirmed in their conference call that they want to maintain profit margin of 41%-43% for the wireless group.
Posted By Jenn, Toronto Canada : October 31, 2008 5:28 pm
This is my guess, but I think if the release gets pushed back again, the closer the release gets to the holiday shopping season, the higher the pressure will be to heavily discount the phone. My thought would be a holiday shopping sales price before rebate of $199.99, so after a suspected rebate of $70, the price will be $129.99. This will make great inroads with people considering the iPhone.
A recent article stated that the iPhone is experiencing the highest growth rate in the income demographic group that is lower than their target. This means that more and more people who they normally would not expect to be able to afford an iPhone (and the accompanying data plan) is lining up to purchase them. Of course success is a two-sided coin. There could be questions as to whether those people can actually afford the voice and data plans over the term of the contract or whether they are risking a higher percentage of contract defaults. However, for lower income levels, brand loyalty means less than price, so for a savings of $70 over an iPhone, a $129.99 Storm could mean major competition to grab those customers.
Verizon definitely has an incentive to sell as many Storms as they can, as they have to maintain sales volumes in order to maintain US exclusivity. That same requirement may be the inspiration on why Vodafone is giving away the phone for free (and UK cell providers normally are not so generous when it comes to handset pricing).
And as far as the comment about Verizon wanting to maintain a profit margin of 41-43%, lowering the purchase price of the phone really isn't going to make a major dent in their profit margin. Over the duration of a 2 year contract, further discounting the phone by $70 means less than $3 a month. That might what? drop their profit by about 0.1% or even less?
I was told by a rep last night that trainning was on 11/7. I went to school with this girl so I know she wasn't feeding me a line of crap. She said the phone should release in a couple of weeks, but all things are subject to change. This rep was from the statesboro georgia branch.
Bookmarks