RIM’s headache with new Torch
The new Blackberry Torch has barely been out for a week but already there are headaches for RIM. The Blackberry maker was hoping that the new Torch would compete with the iPhone, at least somewhat but it looks like that hope is quickly diminishing. After a less than stellar sales debut for the new smartphone, reports earlier in the week suggested that Amazon.com has cut the price of the Torch in half.
When you hear that a product’s price has been cut in half after only a week on the shelf that immediately suggests that the product is no good and no one wants it. This was the talk of the technology news two days ago and RIM has had to defend its product since then. This is not the type of publicity you want for a new product, especially one that is supposed to compete with the iPhone. RIM denied that Amazon has cut the price of the Torch on Wednesday but the damage may have already been done.
Amazon often has prices that are lower than other retail stores through various promotions and gimmicks. They offered the new Blackberry Torch for $99 when AT&T’s price for the phone is $199. This only adds to the negative publicity that came when reports came out that the sales debut of the Torch was not too great. None of this is surprising because just by looking at the phone anyone could see that it is no where near groundbreaking. It looks like a very standard smartphone with no new innovations.
Still, RIM was probably hoping for at least a solid product to add to their line and one that can be a substitute for the iPhone. Although it is too early to say for sue that this will not happen, it looks less likely now. Sometimes, bad press can kill a product before it gets a real chance to show what it can do. RIM should keep defending its Torch, but also focus more on making a truly innovative product for its next debut which may be a tablet product.
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It’s not an iphone, and I think it’s a mistake trying to compete with the apple products – RIM products have always been tools, not toys – and by trying to migrate to that market they will most likely make an inferior product.
Good point. I think RIM is both concerned about Apple’s rise in their own back yard (smartphone industry) and also seeing the potential money that’s out there by making a product that can compete with Apple and that is what is driving them.