94% of Old BlackBerry Trade-ins at T-Mobile Favor Other Brands During Special Promotion
March 5, 2014 12:12 PM
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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.
This article is over a month old, voting and posting comments is disabled
3/5/2014 5:51:50 PM
Margin of error scales with the square root of sample size. I won't get into the details, you can read up on it yourself if you want.
A sample of 100 with 94 incidents gives a margin of error of 1.96 * sqrt(.94 * .06 / 100) = 0.046 = +/- 5% with a 95% confidence interval.
A sample of 10,000 with 9400 incidents gives a margin of error of 1.96 * sqrt (.94 * .06 / 10000) = 0.0046 = +/- 0.5% with a 95% confidence interval.
While the the 10,000 sample does give a 10x more accurate result, the margin of error with the 100 sample is small enough that it really makes little difference. The overwhelming majority of Blackberry users are switching. You'd have to get to ridiculously small sample sizes (like only 20 people turning in their Blackberries nationwide) before the margin of error became as large as you're worried about.
The Von Matrices
The Von Matrices
3/5/2014 9:09:36 PM
You're making as assumption that the people trading in BlackBerry devices are a representative sample of BlackBerry owners.
If the vast majority of people are very happy with their Blackberry devices, then they won't trade them in. In that case the only people who show up for the trade in will be the minority of people who do not like Blackberry, and of course they would overwhelmingly choose other models and skew the trade in statistics
After all, if there is one thing most people can agree upon, it's that the people who still use Blackberry devices either cannot trade them in (e.g. a work phone) or are very dedicated supporters of the platform.
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