You may have noticed that there seems to be a lot of good deals going on BlackBerry devices these days. Amazon is selling the BlackBerry Storm for $99. Verizon has a buy one get one sale going on the BlackBerry Curve and the BlackBerry Storm. Many BlackBerry devices are great bargains right now.
When you see discounts on BlackBerry devices profit margins tend to take a hit. This was definitely the case last week when RIM’s stock took an 18% dive. According to Research in Motion co-CEO Jim Balsillie in an interview at Global World Congress, however, some of the recent drop in profit margin for BlackBerry devices may be permanent.
“Some of it was permanent, some of it is temporary, and we see lots of ways to earn that back and we invest to earn that back,”
“Sometimes you have to price and promote and invest into the phase of the business you’re in,”
It sounds like really good prices on new Blackberry devices are going to be around for a while.