Will Verizon Wireless Give Away The BlackBerry Storm For Free? - InformationWeek
IoT
IoT
Mobile
Commentary
10/31/2008
03:59 PM
Eric Ogren
Eric Ogren
Commentary
50%
50%

Will Verizon Wireless Give Away The BlackBerry Storm For Free?

Verizon Wireless' U.K. partner, Vodafone, recently announced that it will give the BlackBerry Storm to users for free if they sign up for new contracts. Can Verizon Wireless afford to do the same thing?

Verizon Wireless' U.K. partner, Vodafone, recently announced that it will give the BlackBerry Storm to users for free if they sign up for new contracts. Can Verizon Wireless afford to do the same thing?Competition in the smartphone landscape is fierce at the moment. The Apple iPhone costs $200 for the 8-GB model and $300 for the 16-GB model. The HTC G1 costs either $148 or $179, depending on where you buy it. Myriad other smartphones land in the $100-to-$250 price range.

The BlackBerry Storm, the much-awaited touch-screen device from Research In Motion, is due to arrive in November. Many have been asking how much Verizon will charge for the device, which is laden with desirable features.

According to Fortune magazine, many analysts believe it will be priced "at or below the iPhone." Whether that means $200 or $300, Fortune (or the analysts) doesn't say. Fortune also suggests that Verizon may follow in the footsteps of Vodafone and give it away. Analysts aren't so sure. Nielsen IAG's Roger Entner tells Fortune, "It's likely that they will put it at $150 and maybe $99 if they want to ship massive volumes during the holiday."

A $99 price point would allow Verizon to make a killing during the holiday season. But can Verizon afford it? Right now, many believe the BlackBerry Storm will cost at or above $500 if purchased unsubsidized without a contract. If Verizon chooses to sell the Storm for just $99, it will have to cover the rest of that $500 cost, which is $400 per phone. Can Verizon make that money back over the course of a two-year contract? It will depend on how Verizon prices the Storm's voice/data plans.

Verizon will have to make up less ground if it prices that Storm at $150 or $200, but it will still be subsidizing more than half of the cost of the handset.

Verizon has not made a final decision on the matter and probably won't until the device is officially launched closer to Thanksgiving. Until then, we can only guess how much it will be.

Comment  | 
Print  | 
More Insights
Comments
Oldest First  |  Newest First  |  Threaded View
How Enterprises Are Attacking the IT Security Enterprise
How Enterprises Are Attacking the IT Security Enterprise
To learn more about what organizations are doing to tackle attacks and threats we surveyed a group of 300 IT and infosec professionals to find out what their biggest IT security challenges are and what they're doing to defend against today's threats. Download the report to see what they're saying.
Register for InformationWeek Newsletters
White Papers
Current Issue
Annual IT Salary Report 
Base pay for IT professionals has remained flat this year with a median annual salary of $88,000 for staff and $112,000 for management. However, 58% of staff and 62% of managers who responded to our survey say they're satisfied with their compensation. Download this report to find out which positions earn the highest compensation.
Video
Slideshows
Twitter Feed
InformationWeek Radio
Archived InformationWeek Radio
Join us for a roundup of the top stories on InformationWeek.com for the week of November 6, 2016. We'll be talking with the InformationWeek.com editors and correspondents who brought you the top stories of the week to get the "story behind the story."
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Flash Poll