Wednesday, February 14, 2007

Sour BlackBerries

A few days ago Research In Motion Ltd. introduced their new BlackBerry 8800, a product targeted towards business users, only a few months after releasing a BlackBerry for consumers called the Pearl. The new BlackBerry 8800 has a full-keyboard handset, allows users to send email, talk on the phone, listen to music and includes global-positioning-technology system for a cost of $300 after rebate.
After the Pearl had the most successful launch in company history in September, Research In Motion Ltd. took its stylish and multi-media features and simply added GPS technology to create the BlackBerry 8800. The catch - the initial price for a Pearl was $200, meaning that there was a whopping 50% increase to add the mapping and navigation system! This is a clear example of 3rd degree price discrimination as the company is offering almost the same product to two clearly different user groups for different prices: normal consumers for $200 and business users for $300.
Additionally, the new BlackBerry 8800 is only available through AT&T’s wireless unit and includes a two-year service contract with AT&T. This smells like a tie-in sale to me.

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