Blackberry T-Mobile Deal
Blackberry Ltd has ended its deal with T-Mobile in which they allowed the later to sell Blackberry products. This move is one of many that the business is employing in a bid to stabilize and regain its former glory. The decision was made just a few weeks after the two companies were involved in a public spat when T-Mobile offered its customers free iPhone 5s in February, promoting the phones as a great offer for blackberry customers.
This promotion was seen translated as a spiteful move by Blackberry and the new CEO of the company John Chen, was not amused. However, John Legere – CEO of T-Mobile was quick to assure Blackberry and its users of the company’s support indicating that no malice was intended by the promotion, but Blackberry’s CEO was highly critical of the promotion and said as much in a blog post he released after the event.
The result of blackberry’s discontent with T-Mobile’s move is that it has discontinued its deal with the later. The company released a statement saying that it would only continue to provide services to its existing customers on the mobile network or to those that buy its products from the mobile network’s remaining stock, but the deal between the two companies would not be renewed. This is a big blow for the wireless company considering that the Blackberry still maintains its deals with AT&T, Verizon and Sprint – companies that T-Mobile is in competition with.
Chen Implementing Tough Choices To Improve Blackberry Sales
The decision is indicative of the new management style by Chen that is geared at improving the company’s revenue and decrease costs. Since Chen took over in November last year the mobile manufacturer has implemented quite a few cost cutting measures and there is talk that there are some other cuts yet to be implemented where distribution is concerned.
Blackberry has in the past dominated the smart phones sales market but recently its sales have dwindled as customers go for mobile phone devices from companies such as Samsung Electronics Ltd and Apple Inc. It is, therefore, no surprise that T-Mobile’s move to praise Apple iPhones over Blackberry phones in its advert has led to the halting of a deal between the two companies. Chen was quick to point out that they were open to working with T – Mobile again in the future when the carriers “business strategies are aligned” with blackberry’s. We can only wait and see if the two rekindle their working relationship in the future.
BlackBerry Dumps Licensing Deal With T-Mobile
