BlackBerry Ltd (NASDAQ:BBRY) once again saw in dropping smartphone prices. The prices of the latest BlackBerry handsets are anticipated to descend additional as the Canadian smartphone maker aims more sales motivations to distributors as well as operators for pushing the sales of its BB10 devices.
With the intention of improve sales as well as stimulate worldwide demand for BlackBerry 10 devices, the firm performed marketing campaigns as well as cut the price on new shipments of BlackBerry 10 smartphones for the duration of the second and Q3 of fiscal 2014, according to the company’s SEC filing.
The firm released in the filing that the firm aims to implement further sales inducements with its carrier as well as distributor partners to surge sell-through, which could be valid to all BlackBerry 10 devices shipped in the Q2 and Q3 of fiscal 2014. The smartphone maker undergoes a vast loss of $4.4B in its Q3 ended November 30, mostly because of unsold handsets.
The filing reported that the firm could no longer reasonably estimation the amount of the prospective sales inducements that possibly obtainable on confident BlackBerry devices in future periods, resulting in revenues for BlackBerry 10 devices, as well as BlackBerry 7 devices in sure regions.
It stated that the smartphone maker has to cancel plans to released two devices to mitigate inventory risk. BlackBerry reported a primarily non-cash, pre-tax charge alongside inventory as well as supply commitments of around $1.6B in the Q3 of fiscal 2014 as well as this charge was primarily attributable to its BlackBerry 10 devices.
BlackBerry Ltd (NASDAQ:BBRY) cut its price of its highest-priced handset in India, BlackBerry Q10, to around Rs. 40,000 from Rs. 45,000. The device is available on online stores at price of around Rs. 36K. The firm released in February that its full-touch screen smartphone BlackBerry Z10 for regarding Rs. 43,500, which is now available in the Indian market at around Rs. 25,000 that is around 40% lower than release.
As well, BlackBerry rereleased the ‘sell-through levels’ for BlackBerry 10 devices dropped during the Q2 of fiscal 2014, reasoning the number of BlackBerry 10 devices in the channel to surge above the company’s anticipations.
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