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.
That's true. I bought a Curve in early September and it was literally free between the $70 rebate and my NE2. Fortunately i did not cut up the box for the rebate (and therefore not being able to return it). The point is that the Curve is still $$$$ at full retail and Verizon is literally giving them away with a 2 year contract.
That's what makes me *think* the price will be competitive with the iPhone (by competitive i mean same or less than). It might be a hard sell to say "Do you want this free BB Curve or this $400 BB Storm?"
There are still a lot of people that won't trust a touch screen device and the massive price hop is not an incentive to try out "unproven technology".
The Storm is Verizon exclusive, so they have to promote it as being something kind of special..... more special than that Curve and Pearl that other US carriers have.
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?
If people were smart they would realize that the difference between a $199 iPhone and a $129 whatever is negligible after you factor in 2 years of service.
I guess the other side of that coin is that more people will jump on the $129 phone and the carriers would do well to keep cost of entry low when they have you for the next 2 years. It's even more significant when you consider the possibility that indecisive customer switching carriers just for a specific phone.
I still think it won't be out until right before Black Friday like a sales rep told me. Judging by how they still haven't announced anything it doesn't sound like it couldn't be true.
If people were smart they would realize that the difference between a $199 iPhone and a $129 whatever is negligible after you factor in 2 years of service.
I guess the other side of that coin is that more people will jump on the $129 phone and the carriers would do well to keep cost of entry low when they have you for the next 2 years. It's even more significant when you consider the possibility that indecisive customer switching carriers just for a specific phone.
True.....however, people (especially if you are looking at a lower income demographic) are extremely sensitive to price. The vast majority of the cell providers' customer base is not a HoFo reader. They are not necessarily willing to pay extra money for the latest greatest new thing (heck....I'm a HoFo reader and I would NEVER pay full retail just to have the newest phone). That is why "free" phones are still such a huge draw. This is also why WalMart does so well.....when you're that size and can sell a product cheaper than other retail outlets (even if it is $11.97 versus $11.99), customers will flock to you even as they curse WalMart for bringing doom to mom and pop stores on Main Street.
And with the economic climate today, folks are going to be even more cognizant of their discretionary spending (and using Brand A cell phone versus Brand B is discretionary).
I still think it won't be out until right before Black Friday like a sales rep told me. Judging by how they still haven't announced anything it doesn't sound like it couldn't be true.
I don't recall them (Verizon) ever really giving a lot of prior notice to them releasing a cell phone. Look at the Pearl, the Curve, Voyager, Dare, etc. Except for info leaking out from insiders and making it onto the net, you never really had Verizon coming out in advertising saying that such and such handset will be available on a certain date.....except for maybe a few days in advance.
happened to stroll into circuit city. started playing with the curve. rep asked if i needed anything, just told him i was waiting for the storm. he told me that got a list going and he can call me if they get demos in early to play with. he said the official date is the 16th. i said i was confused cuz the corporate store yesterday told me no confirmed date. he said "thats strange bc we get the same emails. maybe they didnt check it today..." just some info FWIW
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Verizon BS me yesterday when i called them...cuz iam available for $100 discount..and I asked if they have any clue when the Storm coming out and they just said...nope.lol They have no release date. I just said well I guess u guys gonna have to wait for it come out and then ill upgrade. I think Verizon Promoted the Storm a Lil too early..marketing technique is to promote it the most 1.5months. But mayb its my opinion Im just a Marketer.
While I was getting my Voyager exchanged for a 3rd new Voyager I was talking to one of the techs about the Storm. He said they are going to training in about 2 weeks and expects to actually handle one then. And he also said the training keeps getting pushed back every time the release date gets pushed. We were trying to figure out a way I could somehow get the Storm without paying full retail but if it doesnt come out soon thats gonna be real hard.
“I believe that banking institutions are more dangerous to our liberties than standing armies. If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around the banks will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered.” -- Thomas Jefferson, 1802
I just got off the phone with a VZW Tech, they have to ship me out a replacement BB Curve. While she was talking to me she mentioned that in a few weeks I would want to upgrade to the Storm. So I acted like I did not know what she was talking about. She went on to say that it is the new BB device that is fully all touch. I told her I don't know about a completely touch device. She went on to say she just finished playing around with it and it isn't for her. She said you have to touch and press it a certain way and thinks it would be a pain while driving. She said that she would not suggest being the first one to rush out and get one. I said I agree, I can see part touch but I need a physical component as well. She also said that it would be out in a few weeks and everyone will be rushing to get one; she said she could see the amount of tech calls skyrocketing. By this time she finished taking my info and getting the replacement Curve sent out to me. She finished the conversation by saying "opps I am supposed to be promoting this thing but I just can't." Not a lot of info but a little insight into wait one of the VZW techs is thinking about it.
I was in the verizon store and one of the girls who worked there assured me the storm was for sure coming out sometime this month. She took my number and said she would call me whenever she hears anything else...
The Official BlackBerry Storm 9530 Pre-Release Thread 3 (Off Topic Posts=1 Day Ban)
Originally Posted by ENJOIcoheed
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