Blackerry Z10 Price Slashed By 75% But Not In OZ

Written by David Richards     15/07/2013 | 08:21 | Category: PHONES

Australians are being asked to pay up to $67 a month by both Telstra and Optus for a Blackberry Z10 which has been slashed in price to $49 a month by overseas carriers and retailers due to poor sales.

Blackerry Z10 Price Slashed By 75% But Not In OZ
In the USA carriers and retailers are already discounting the device by as much as 75% due to poor demand for the Canadian smartphone.

Currently Telstra is charging $67 a month or $1,608 for a 12 month contract for the device, Harvey Norman is selling the Blackberry device outright for $588. 

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AT&T and Verizon Wireless, cut the price of the Blackberry Z10 to $99 from $199 with a two-year contract. Best Buy and Amazon are now offering the phone under contract for $49. Without the contract, the Z10 sells for about $700 which is $112 more expensive than what Harvey Norman is selling the same device for.

A BlackBerry spokesman said in a statement that "now is the right time to adjust the price" of the Z10 as the company introduces newer models.

"It's part of life cycle management to tier the pricing for current devices to make room for the next ones," he wrote in an email. "This is just one element of our marketing strategy that will ensure we remain aggressive in a very competitive market landscape."

Three months ago BlackBerry said that they were banking on a turnaround on sales of its new line of phones, including the Z10 and the keyboard-equipped Q10, which went on sale in Australia in June.

The Wall Street Journal said that in its most recent earnings report, new BlackBerry phone sales came in well under most analysts' estimates, though the company didn't break out sales of the models.

Investors hammered BlackBerry shares after the earnings results came in, and pressure is mounting on chief executive Thorsten Heins to prove that his promises of a turnaround are bearing fruit.

On Friday, BlackBerry's shares traded down about 1% to $9.24. The shares are down about 36% since the earnings report.