Chris Lau
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Chris Lau in Value Stocks,

Update: BlackBerry Priv Price Cut Good News

Originally posted as a poll, readers are split on whether BlackBerry benefits (net) for cutting prices for Priv.

BlackBerry lowered the price of the Priv by $50. The device is now $649.

By comparison

  • Google Android Nexus 5 - from $439
  • Galaxy S7 (refreshed)- $599
  • Apple iphone 6s - from $649
  • Apple iphone 6s plus - from $749

Recall that Chen said the company needs to sell 3 million units overall to break-even. This should help move the needle.

Agree or disagree: Priv price cut is good news for the hardware division in meeting goal.

Update - April 9

Member Michael Zhou said BBRY should try harder: 

"It is good but not enough. Market needs the phones at different price range. Try harder and don't give up!

Member Alexander Valtsev is skeptical:

Wait - they need 3M units at what price? I bet with the price cut they need 3M+ to break-even

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Chen will now right the BlackBerry devices ship by addressing the mid-level market. BBRY will release two Android devices this year. Thankfully, the company will not play in the budget market just to gain market share, as Microsoft did with the Lumia 5xx series. That strategy would only have worked if BBM, secure solutions were promotable to those markets. It is not.

Clearly, Priv's initial success (by profit) is over, and now the company must appeal the masses. It is not that hard: physical keyboards have a place in the market. It is superior to voice recognition and touch-screen keyboard. Users who write more than read need a mid-range option.