94% of Old BlackBerry Trade-ins at T-Mobile Favor Other Brands During Special Promotion
March 5, 2014 12:12 PM
comment(s) - last by
The offer ends today
T-Mobile's latest offer for BlackBerry users seemed to be successful for everyone
, T-Mobile's BlackBerry trade-in campaign resulted in 94 percent of old BB devices being traded for smartphones made by the company's competitors. It isn't clear exactly how many customers participated in the promotion.
Last month, T-Mobile presented a $200 trade-in offer for BlackBerry users that aimed to get them an iPhone for a great price. This led to a lot of fuss from BlackBerry fans and BlackBerry CEO John Chen, who called the promotion "inappropriate and ill-conceived."
T-Mobile tried to make it right by offering an extra $50 for users who decided to trade-in an old BlackBerry device in favor of a new one like the Z10 or Q10.
However, that extra $50 didn't seem to make much of a difference. A vast majority of old BlackBerry trade-ins ended up favoring other brands.
The offer ended today, and T-Mobile noted in an internal memo that the promo led to a 15x increase in BlackBerry trade-ins.
BlackBerry really didn't need to lose any extra customers at this time, considering the company is already having major troubles.
Last year, BlackBerry had a full year
net loss of $5.4 billion USD
on revenue of $8.6 billion USD. It's latest operating system and line of devices -- BlackBerry 10 (BB10) -- had
To make matters worse, fewer than half as many BlackBerry Enterprise Servers (BES) were in use as there were three years previous, and market capitalization
had fallen from $83 billion USD
in mid-2008 to a mere $3 billion USD late last year.
Overall, BlackBerry devices represented less than 1 percent of global smartphone shipped in the final quarter of last year.
But Chen remains positive and is looking to turn his company around. Chen -- BlackBerry's third CEO in just two years -- said he will
focus on the enterprise
once again, which is what BlackBerry has traditionally done best.
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Definition of Cell Phone Customer
3/5/2014 2:53:52 PM
Not sure this blogger knows the definition of a Cell Phone customer as it applies to a company that makes cell phones.
An owner of an out of date cell phone does not generate much of any revenue for a cell phone maker. The device would be largely static, few app purchases, mostly generating revenue for the cellular service provider.
As the other commenter mentioned, converting some of these people to customers of the latest phone at a higher rate than regular purchasers would be positive.
"We don't know how to make a $500 computer that's not a piece of junk." -- Apple CEO Steve Jobs
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