NEWSLETTERS
 

CIO.com updates, insights and advice on technology, management and your career.

 
 
 
SUBSCRIBE TO CIO
 
Are you involved in setting the direction for your company's IT budget or strategy?

Apply today for a FREE subscription to CIO Magazine!

 


Mon, Aug 18, 2008 14:29 EDT

RIM BlackBerry Bold: At About $400, Pricier than iPhone 3G – For Good Reason

Topic: Infrastructure

Blog: Mobile WorkHorse

Current Rating: 5 Comments: 9

Research In Motion (RIM) is expected to release its much anticipated, 3G smartphone, the BlackBerry Bold, in North America within the coming weeks, but the steep price tag tied to the new device just may come as a surprise to many of the folks eagerly awaiting its release. Not me, though...and here's why.

The BlackBerry Bold is already shipping in some countries, including Australia, Austria, Germany and Turkey, mostly to business customers, so pricing specifics are sparse. The new RIM smartphone isn't officially available anywhere in North America, though rumors and other details regarding pricing are bouncing around the Web. In fact, just last week a leaked document from Canadian carrier Rogers hit the Web, bringing the news that the Rogers BlackBerry Bold will retail for $399 along with a three-year contract. Rogers is expected to begin selling the device later this month.

Image of the RIM BlackBerry Bold smartphone with red battery door at WES
BlackBerry Bold with Red Battery Door

Rogers has traditionally priced its BlackBerry devices a bit higher than its U.S. peers, but the official Bold price came as a shock to a lot of BlackBerry loyalists and smartphone watchers, many of whom had expected a significantly lower price due to the fact the Bold-rival iPhone 3G 8GB sells for half that price along with a two-year AT&T contract. (The 16GB iPhone 3G is also cheaper, at just $299 with a two-year contract.) Some bloggers even played on the Canadian carrier's name, affectionately dubbing the company "Robbers."

When I first heard that Rogers planned to charge $399 for the Bold along with a three-year contract, I couldn't help but laugh. That's a lot of money—enough to keep me from upgrading if I was a Rogers customer. Then, because I have quite a few BlackBerry-addicted associates north of the U.S. border who are Rogers subscribers, I started to feel sorry for them, not only because $400 is very pricey for a new smartphone, but also because they'll need to sign a new three-year contract instead of just the two-year commitment that most U.S. carriers require. (T-Mobile Germany subscribers are paying what amounts to just under US$200, as well, so Rogers's pricing seems all the more steep.)

But then, the more I thought about Rogers' pricing decision, the more it began to make sense--and the more sure I became that AT&T will indeed release the device with a similar price tag, though I can't see the U.S. carrier requiring more than a two-year service contract.

Right now, RIM is trying to find a balance between catering to its traditional customer base, enterprises, and the newly-tapped consumer market. Over the past decade or so, RIM earned a reputation as a company that makes durable and reliable business devices, and it has blossomed into the smartphone giant it is today because of this. RIM is slowly moving away from businesses and embracing consumers with new devices meant to meet their specific needs—though the Bold admittedly crosses into both territories. RIM needs to be careful not to alienate those same businesses that lifted it to its current stature in the smartphone world.

RIM's number one concern must remain the business customer—at least until it more firmly plants its feet in the consumer market. That means not only creating devices with enterprise-oriented features missing from rival offerings, but also continuing to create the BlackBerry mystique that has thus far set the smartphones apart.

Until last year, many BlackBerry users

You do not have flash or javascript support.
Average (4 votes)
5
 
 
Mon, Aug 18, 2008 23:45 EDT
Anonymous user
Posted by: Jon
Rating: 60

No one is as elitist as an apple enthusiast. The main reason it will never fly right off the bat is because people need the qwerty keyboards on those devices. Most men i know have a heck of a time using the keyboard on the iPhone. it's terrible.

Function first.

 
Tue, Aug 19, 2008 13:33 EDT
Anonymous user
Posted by: Anonymous
Rating: 50

Well, things differ for different observers, it seems. Most people I've seen using an iPhone are men, approximately 40% of them are Mac users, and none of them complained about the keyboard. They complain about the camera or a particular VPN-flavor they need or the missing copy-paste function, but never the keyboard. Isn't that odd?

 
Thu, Aug 21, 2008 14:41 EDT
Anonymous user
Posted by: Anonymous
Rating: 90

Cellphones are no longer status symbols. NOT having to carry a cell phone because other people answer your calls is a status symbol. Cell phones are constantly changing and disposable. Spending $400 on a BB is foolish and will make the owner look stupid especially when the NEXT BB is released. Early adopters always get screwed in the end. So do BMW owners. I drive a Nissan, and save enough to buy this phone, but I am still happy with my BB 8830.

 
Wed, Aug 27, 2008 10:19 EDT
Anonymous user
Posted by: Steven
Rating: 90

Ya know, I listen to these debates all the time by my developers regarding which is better; the blackberry or the iPhone. Personally, I think they're both great, just in different ways. At work we have a Blackberry Enterprise Server so I use my Curve happily during the work week. However, when I get home at night or on the weekends I use my iPhone, not because I think its a status symbol, because I am a Mac user. I personally dont want any work emails coming through on my off hours with my family.

I have my personal email set up on my iPhone, a limited contact list of family and friends, iTunes, and some pictures of my wife and kids. It's nice when I have to run to the supermarket or something that I can bring just one device and be able to do everything (listen to songs, call home, talk to friends, whatever) without having to carry around two things (iPod, Blackberry, etc.)

I think that people spend a lot of time debating about things as unimportant as this. Use what you like and be happy about it. Let people use what they like and let them live without hearing what you think. Everyone has their own preferences and likes... that's life.

Its absolutely true about how not having a cell phone is a status symbol. The CEO of my company never carries a cell phone. You have to call his assistant or driver or whatever and tell THEM what you want and he'll call you back when he's damn well good and ready. That's pretty sweet! Us lowly CIO's are always tied to a device it seems because IT employees are never done emailing and texting you about some disaster.

 
Wed, Aug 27, 2008 10:43 EDT
Posted by: Al Sacco
Rating: 90

Hello Steven and Anonymous,

Thank you for your comments. They're appreciated.

However, I think you're both kind of missing the point of my post. I was not trying to prove that the BlackBerry Bold is better than the Apple iPhone 3G or vice versa. I completely agree that they're tools meant for (mostly) different purposes and should be treated as such. But since both device makers are targeting an increasingly similar audience, they're searching for ways to differentiate their wares.

Price is a great differentiator, and that is the point of my post; while Apple is attempting to broaden its iPhone customer base by dropping the price of the iPhone 3G so it's more affordable, RIM and its carrier partners are trying to secure the Bold as the high-end smartphone for executives by pricing it outside the budgets of typical consumer smartphone users. With that high price tag comes a certain level of exclusivity. And like it or not, that exclusivity will be seen by many as a symbol of status.

RIM has plenty of other more consumer-oriented devices in the pipeline, and it will go after potential iPhone users in the future with these devices, not the Bold.

AS

About this Blog

Al Sacco writes about (and drools over) anything and everything mobile or wireless as it applies to the global workforce--with a focus on BlackBerry smartphones. Follow this blog on Twitter: @MobileWorkHorse.

Start a Conversation
Click to post

Got something to say? We want to hear it! Click the Post button to get started. GO»

YOUR NETWORK
Connect to companies in this post
  • Apple
  • AT&T
  • RIM
EXPERT ADVICE
See our roster of experts.

Advice & Opinion from more than 97 of IT's most insightful thinkers.

advertisement

  PARTNERS       WEBCASTS    
 

From Laggard to Leader: Transforming the Data Center

This webcast offers an understanding of how customers are transforming their data centers, the successes and challenges of each approach, and how IT can become the driver to provide real business value and competitive advantage.

Sponsored by HP  Register for this Webcast »

 

Raising the Bar on Business Service Delivery

Applications drive every business, but as networks become more complex and dynamic, performance has become a key tenant in service delivery. In this CIO webcast, Forrester and Fluke Networks offer advice and best practices for ensuring high delivery with better application performance.

Sponsored by Fluke  Watch this webcast. »

 

Conquering Information Management Challenges: Turning tacit knowledge into actionable insight

It's no surprise that enterprises are adopting strategies to aggregate data into actionable intelligence. This research paper explores how leading enterprises are rising to the challenge - from imposing structure to developing an information management framework.

Sponsored by BearingPoint  Read this White Paper »

Resource Alerts

Get instant email notifications by topic when white papers, webcasts, and case studies are added to our library.

Resource Alerts

Get instant email notification when white papers, webcasts, and case studies are added to our library. Don't just be up-to-date—be up to the minute with our new Resource Alerts.

CIO Viewpoints on Exchange 2007 Risks and Mitigation Strategies

Knowing where your peers have found limits and workarounds in areas including high availability, archiving, recovery, compliance, e-Discovery and storage growth can be essential in planning your successful Exchange 2007 migration.  Read More »

 

Where's the CIO? -- The Missing Link in Your SOA Strategy

In this webinar, you'll hear why the time is now to grow the value you've achieved at a project level to an enterprise-wide ROI, how to do it, and what role the CIO can play to make your SOA strategy a success....  Read More »

 

Data Protection: Challenges for the Traveling User

Business today often involves traveling to meet with customers and partners directly...  Read More »

Resource Alerts

Get instant email notification when white papers, webcasts, and case studies are added to our library. Don't just be up-to-date—be up to the minute with our new Resource Alerts.

 
NEWSLETTER

Sign-up for the Blogs & Discussion Newsletter

 
FEATURED SPONSORS
 
 
 
SPONSORED LINKS
 

Spend less. Get hosted UC. Get cash back. It's easy under a Cypress

Predict the future with HP Insight Power Manager

Log onto Hitachi True Stories, films inspired by the next great achievement

Earn PROFESSIONAL DOCTORATE Part-Time, Online at Syracuse University's iSchool

Make IT Work As One@novell.com

Predict the future with HP Insight Power Manager

HP LaserJet P4014n printer starting at $799 after $100 IS. www.hp.com

CIO Starter Kit includes useful resources created by top CIOs. Free Download>>

The Business of Managing Content: Xythos Document Management & Microsoft SharePoint

Virtualization Benchmark and TCO Analysis-Read Now

White Paper: Scaling Down HPC for Smaller Organizations

White Paper: Never Enough Compute Power?

Microsoft Windows Vista Cost and Benefit Estimator

White Paper: Efficient Desktop Application Management

White Paper: Take your Call Center to the Next Level

Is Your WLAN Helping You Comply with Security Guidelines of the PCI Standard?

White Paper: Improve Employee Efficiency and Reduce Telecom Costs

White Paper: Green Issues for Networking

New IDG Survey Results on Data Center Automation

A CISO's Guide to Application Security

Operational Excellence Is Key to Maximizing IT Investments

Learn how companies are changing how they reach out to their most profitable customers.

The Right and Wrong Master Data Management Strategies to Start Small and Grow Big

The Customer Communications Management Platform - Key Functionality and Best Practices

Learn how the new Quad-Core AMD Opteron™ processor improves performance

Affordable technology-no compromise. HP server solutions

SOA Educational Library at the TIBCO SOA Resource Center

CIO Viewpoints: Migrating to Exchange 2007

Thrive during global disruption. Cisco video featuring Juan Enriquez

A new level of interoperability. Make IT Work As One@novell.com

Protect data-HP All-in-One and Disk-Based systems

Businesses Transform with VMware Virtualization

Download the free CIO Starter Kit to access useful resources created by top CIOs

Leveraging Social Computing Technologies for ERP Applications

Server Virtualization Benchmark Results

Learn to Leverage Maximum Computing Power

Windows Vista: Essential Benefits and Deployment Strategies

Best Practices: Safe and Secure Hardware Asset Recovery

White Paper: Migrating to Windows Vista and Microsoft Office 2007 Together

White Paper: Enabling Next Generation IP Communications

White Paper: A Cohesive Network Security Approach

Why Your Firewall, VPN, and IEEE Aren't Enough to Protect Your Network

Dramatically boost network capacity and speed-up to 600 Mbps

White Paper: The Roadmap to Data Center Automation

17 Ways to Reduce Cost in IT

Learning from BPM Leaders

A fresh look at the impact of customer intimacy.

Webcast: Mitigate Operational Risk- Real Answers for Tough Times

Laptop Security: Where Do CIOs See Weaknesses?

Paving the Way for Trusted Collaboration