BlackBerry Leaving T-Mobile in April, Says Strategies Not "Complementary"
April 2, 2014 12:25 PM
The final day of BlackBerry and T-Mobile's existing contract is April 25, 2014
BlackBerry wasn't too happy with T-Mobile when the carrier launched what seemed like an
in February, so BlackBerry is cutting ties.
According to a BlackBerry
, the Waterloo, Ontario-based company will not renew its contract with T-Mobile when it expires in April.
However, BlackBerry said it will make sure that existing BlackBerry customers with T-Mobile will see continued support and service -- even after the April deadline.
“BlackBerry has had a positive relationship with T-Mobile for many years. Regretfully, at this time, our strategies are not complementary and we must act in the best interest of our BlackBerry customers. We hope to work with T-Mobile again in the future when our business strategies are aligned,” said BlackBerry CEO and Executive Chair, John Chen.
“We are deeply grateful to our loyal BlackBerry customers and will do everything in our power to provide continued support with your existing carrier or ensure a smooth transition to our other carrier partners."
BlackBerry even took a small jab at T-Mobile, saying that long-term BlackBerry users have other carriers to consider for continued support, and showed them where to look if they decide to do so.
The feud between BlackBerry and T-Mobile began in February, when 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 CEO Chen, who called the promotion "inappropriate and ill-conceived."
The campaign that started it all [SOURCE: Android Dissected]
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. The trade-in campaign resulted in
94 percent of old BlackBerry devices being traded
for smartphones made by the company's competitors.
The offer ended in early March, 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. For instance, 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 largely flopped as well.
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.
Just last week, the Canadian mobile company reported revenues of $976 million in Q4 2013, which was down 64 percent from the $2.7 billion it reported in the year-ago quarter. This is also the first time BlackBerry has
had less than $1 billion in quarterly revenue
BlackBerry's loss was $42 million for the quarter, which was down from the $94 million it earned a year previous. BlackBerry still has about $2.7 billion in the bank, but that's down $500 million from what it had last quarter.
The final day of BlackBerry and T-Mobile's existing contract is April 25, 2014.
"It seems as though my state-funded math degree has failed me. Let the lashings commence." -- DailyTech Editor-in-Chief Kristopher Kubicki
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