Wednesday, February 13, 2013

Are the delayed handsets enough to save BlackBerry?





With all the leaks and rumors the BlackBerry handsets weren’t a well-kept secret.  They debuted their two new handsets, their new operating system and their brand new App Store (see previous article here). What was surprising about this event was that pre-orders and orders were given a speculative date of March.  Why such a long wait? When Apple and Samsung debut a new product, pre-orders begin immediately and within 2 weeks they ship. We have not been given a clear reason why but there is some evidence we can look to like the Super Bowl Ads, service provider testing and internal issues within BlackBerry itself.
I would assume BlackBerry booked Ad space during the Super Bowl months in advance. They must have thought that they would be ready for release by the time of their announcement and following that, the Super Bowl.  Some believe that the Super Bowl Ad was bought to inspire people and consistently keep BlackBerry fresh in the mind. They may not have been equipped to ship their new handsets but they have done one thing correct; throughout their re-branding they have constantly given us pieces of information, building the intrigue.



What about the carriers? They all agreed to launch the same day in the US but did they have sufficient testing time? The current reason the US is getting the Z10 later than the rest of the world is that carrier testing is taking longer. The major carriers may not have had enough time with the handsets, and since they will be fielding support issues they probably wanted to ensure quality.
It could be that BlackBerry didn’t supply them with samples quick enough, or the FCC testing of the Z10 model is being delayed which impacts Verizon and Sprint. Or perhaps the US carriers were concerned about BlackBerry’s viability and wanted to see the market reaction. This supports the Super Bowl Ad and the pre-emptive debut on January 30th. If intrigue was less than they hoped, carriers would have time to scale down their orders and plans.

BlackBerry (RIM at the time) did cite that they had to wait for a certain dual-core processor to become available. This reasoning supports the idea that they couldn’t make enough units in time to give all four of the major carriers an adequate launch date. Production delays could also be excuses though. It’s possible that BlackBerry just needed time. So they slowly leaked information to keep up intrigue about their new designs, buying time to physically build their brand and devices.
Recently Home Depot dropped their contract which held around 10,000 handsets. Why would they stick it out with BlackBerry all this time only to drop the contract 6 weeks before the new units are available? Is this a foreshadowing moment for the new BlackBerry?

The actual release date has been leaked for March 27th on T-Mobile. Solavei, a smaller startup carrier who piggy backs on T-Mobile’s network, has them available now for $1000 with a $50 unlimited plan. This smaller customer network allowed the upstart MVNO to finish testing the BlackBerry Z10 earlier than their competitors. Verizon has confirmed that they would offer the Z10 for $199 with a two year contract and it is expected to be priced similarly on the other networks. There is no new release date on AT&T, Verizon or Sprint but you take what you can get for now.

BlackBerry has consistently promoted their new designs and we know the network carriers are all on board. The issue is if the hype of their January 30th event and the Super Bowl Advertisement campaign will be enough to last us until the handsets become available. A closer availability date in the US definitely would have been optimal but here’s hoping consumers don’t forget to buy the new Blackberry handsets when they are finally available at the end of March. This is a make or break moment for BlackBerry. They are losing contracts, and delaying their new product release. Is this a grim outlook for the company or will they pull through?

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