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Could BlackBerry’s T-Mobile Divorce be a Cost Cutting Measure?

John Chen

A few readers sent in a Reuters article that makes an interesting connection. At a media roundtable last week, CEO John Chen told reporters that BlackBerry had completed most of the internal cost cutting he had planned. He said that “further cuts would come within its sales channel.” Specifically he said that:

"Now I am onto the next part of the cost (cutting), which is the distribution costs of our product,"

Supposedly Chen hinted that BlackBerry is offering some carriers and distributors “significant” cuts on pricing for devices which was gutting profits. This could also be why BlackBerry is now trying to sell devices directly from directly to enterprises and customers.

What do you think?

10 total comments on this postSubmit your comment!
  1. May be part of it. But T-Mobile caused BBRY harm and miss-represented them. They cost BBRY good sales by lying to customers.

  2. No need to sit back and eat dirt-be proactive!


  3. Selling devices directly from directly to enterprises and customers was probably the best idea they could have had.

    I would have done it… around 2011… but I’m glad it’s there now.

  4. Palm was selling their own devices way back. What took BBRY so long to wake up? But it makes me happy. Don’t have to worry about buying without a good warranty if something goes wrong.

    • returning devices for warranty reasons was much easier before with carriers, in Canada anyways. Now you have to jump threw a ton of hoops.

      • In the USA I didn’t wait on carriers to devices in. The middleman would be someone on ebay. So you can’t imagine how creative i had to get the Z10 serviced when it just wouldn’t turn on.

    • Palm went “belly up” years ago. BlackBerry is fighting back, but losing market share so fast, in two years, they will lucky to be a software company…

  5. On the positive side, this eliminates the middle man allowing BlackBerry to capture more of the markup on each device sold. On the negative side, customers may not be aware that BlackBerry devices are available for their carrier if they don’t see them in retail stores. BlackBerry will need to do a better job of marketing than they have done to date. Also, as chestr noted, BlackBerry now has to handle warranty issues at least as efficiently as the carriers did. I hope this works for them.

  6. Z10 and z30 need to be made available across all the remaining carriers.

  7. Dell did very well with online business model among heavy competition from HP, … which sold PC at retailers, …

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