Why BlackBerry Ltd is Giving Away Phones, but Betting on Luxury

Oh dear BlackBerry Ltd (NASDAQ:BBRY), you don’t seem to have the best track record lately, but at least you have your smartphonesor do you? As sales of the BlackBerry Z10 have sunken dramatically of late, the mobile phone company made a move by relying on its carriers to vanish the stock overload. As such, Verizon Communications Inc. (NYSE:VZ) and AT&T Inc. (NYSE:T) has agreed to give away the Z10 for little or no money at all. However, over in London, BlackBerry broke Harrods’ sales records with the Porsche Design P’9981 Device.

Research in Motion Ltd. (BBRY)

How will these contrasts pan out and what other news does BlackBerry have?

Giving away the goods

What to do when you sell a mobile phone for $199 through carriers, but then lose $934 million because nobody wants to buy said phone? Well, give them away for cheap and at least get rid of the stock. BlackBerry Ltd (NASDAQ:BBRY) must have thought somewhere along these lines, because AT&T Inc. (NYSE:T) announced today that it would be selling the BlackBerry Z10 for merely 49 cents with standard two-year contract. Does that sound crazy? Well hold your hats, because Verizon Communications Inc. (NYSE:VZ) even jumped on board of giving them away for free. Also, T-Mobile US Inc. (NYSE:TMUS) declared that it would no longer carry BlackBerry phones in its retail stores.

It’s all about the apps

Poor BlackBerry Ltd (NASDAQ:BBRY), being pushed and shoved that way. But the truth is that the mobile phone company just can’t catch a break when it comes to its competition. Although the Z10 is no Apple Inc. (NASDAQ:AAPL) iPhone, it’s still an average smartphone. However, the sales impediment deranges from Google Inc. (NASDAQ:GOOG)’s Android system and Apple’s iOS which are sweeping the BlackBerry’s floor. But the mobile company is not going under without a fight and released the OnStar Remote Link app. This feisty app for Z10 and Z30 models lets you link any 2010 Cadillac, Buick, Chevrolet and GMC model in order to get real-time information and perform commands.

Porsche: a safe bet

Now, obviously a single app release isn’t enough to restore BlackBerry Ltd (NASDAQ:BBRY)’s market balance, but maybe a record breaking sales number will. The $1000 Porsche Design P’9981 phone was awarded the top product in all of London’s Harrods for 2012, due to its 130,000 devices sold. BlackBerry was also awarded with the best launch of a luxury product, as the P’9981 smashed all records and is the best-selling luxury phone EVER. So here’s a thought, maybe BlackBerry should focus on the luxury market in the future, and leave the commoners to Apple Inc. (NASDAQ:AAPL).

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