RIM Planning On Making Device Profit Margin Cuts Permanent – Keep The Good Deals Rolling

Bloomberg got James (Jim) Balsillie on record confirming that RIM will continue to keep their profit margins low on their devices for now. In their last SEC filing RIM pointed at lower device margins (profit) for some of its performance discrepancies. As the BlackBerry devices get more expensive to manufacture and prices keep dropping RIM makes less money off each device.

It looks like RIM was the one behind Verizon’s recent Buy One Get One Free offer on the Storm. According to Balsillie they are planning on pricing the devices low to conquer market share.

Here is to hoping that RIM keeps the device cost down and makes it up in economies of scale…

Check out the details at Bloomberg

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  1. I suspected it was more a RIM move than a Verizon move. BUT, only on Storm. All the free Curve’s and Pearl’s I bet came out of already paid inventory.

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