Research In Motion Ltd (NASDAQ:BBRY) BlackBerry is doing its best to make a comeback in the smartphone market. If nothing else, the company would like nothing more than to grab onto third place (behind iOS and Android) and then grow from there. However, it has run into trouble along the way (as you will see here) and it doesn’t appear that this is going to change anytime in the near future.
BGR recently published an interesting piece, taking a look at what is going to happen if a “smartphone price crash” continues to move down the current path.
Here is what you need to know:
“The global average sales price (ASP) tumble to $375 today from $450 in early 2012 was simply too rapid to manage. The industry was lulled into complacency in 2011 and 2012, when smartphone pricing held relatively stable as the high-end iPhone and Galaxy devices gained share from cheaper models. Now budget models are the hottest niche in the industry and strategic planners of most leading vendors probably missed this sudden switch completely.”
This is something that every company needs to keep an eye on, particularly Research In Motion Ltd (NASDAQ:BBRY).
The article goes on to add that two vendors have missed the boat, putting themselves in a difficult position moving forward. HTC is the first company noted, sowing that the HTC One is over priced at $600 and this is why consumers may be turning the other way.
The other company, as you may expect at this point, is Research In Motion Ltd (NASDAQ:BBRY).
Here is what the piece added:
“BlackBerry chose to launch the first two BlackBerry 10 devices above $600 while setting its cheaper device, the BlackBerry Q5, at $400. This may turn out to be a fatal mistake.”
At this time, it appears that HTC and Research In Motion Ltd (NASDAQ:BBRY) are on the outside looking in if prices continue to trend downward. This is a tough spot for these companies, and one that they will have to fight out of in the near future if success is going to be reached.
Every smartphone company is dealing with this same issue. However, we cannot expect every company to react the same way. Will HTC and BlackBerry have what it takes to turn things around?