BlackBerry Torch Selling Slowly

Article

http://www.cbc.ca/technology/story/2010/08/17/blackberry-torch-price-slashing.html

Summary

Research In Motion's (RIM) newest device - the BlackBerry Torch - is not selling as well as they hoped.  Sales went from bad to worse!  Analysts report that they didn't see any line-ups at stores to buy this device.  Most of these buyers appear to be existing BlackBerry owners.  Analysts stated that the Torch had only sold 150,000 units over the weekend.  This number was extremely small compared to the iPhone 4 which sold 1.7 million in the first weekend.  While the improvements in this new BlackBerry are apparent, technology reviewers weren’t impressed overall because the core was more of the same.  

Connections 

This article talks about a demand problem because consumers are not willing to purchase the new BlackBerry Torch.  There are many factors affecting demand.  Price is a factor but it is not the problem because Amazon is currently selling this device for only $100!  A substitute product is probably the most likely factor affecting the demand.  The iPhone 4 has just recently been released as well and sales have been great.  Although the iPhone 4 is much more expensive, consumers are still willing to buy this product because they don’t mind spending a lot of money on it.  Some people may not like the Torch because of its appearance and or functions.  That is why tastes and preferences is also another factor that could affect demand. 

Reflections

I am currently a BlackBerry Bold2 user and I think that this phone is awesome.  I honestly think that the Torch is not a visually appealing phone; therefore there would be a decrease in sales.  If I were to choose between the iPhone 4 and BlackBerry Torch, I would definitely choose the iPhone 4 even if it is pricier.  I would be willing to pay more for a phone that I liked and I believe that other consumers would as well.   That is why I believe that there is a demand problem for this product.  Perhaps if the phone were more visually appealing with better improvements made, other consumers would be attracted to it too. 

$22-Million Facility in Surrey Part of Crime Reduction Strategy

Article
http://www.vancouversun.com/health/Work+starts+sobering+centre+next+month/3543299/story.html

Summary

A $22-million sobering centre will be constructed in Surrey next month to assist and house people with drug and alcohol addictions.  The City of Surrey believes that this facility will help to reduce the crime rate.  Police will take intoxicated people to this new facility as long as they have not committed any other crimes.  They will not be locked up and just let out in the morning. Instead, there will be people trying to help them.  There will also be a mental health clinic operated by the Phoenix Drug and Alcohol Recovery and Education Society. A representative from Fraser Health said that this sobering centre will cost about $5-million per year and that the money will come from the existing mental health budget. 

Connections

Opportunity cost is what relates this article to our text.  The opportunity cost for building this facility is $22-million with an additional $5-million per year.  This large sum of cash (opportunity cost) could have been used to 1) better educate people about drugs and alcohol 2) hire more police and RCMP officers 3) improve conditions at the hospitals. Money is our scarce resource here and we are making decisions on how to spend it.  We are spending this scarce resource on a facility to help better the community.

Reflections

In my opinion, I think that the opportunity cost ($22-million) is wasted on this centre.  Where would all this money come from? Obviously from us tax payers.  I dont' think that everyone would be willing to pay more taxes for addicts. In the long run, I do not believe that this centre will help to reduce Surreys’ crime rate because addicts will no longer be going to jail.  Instead, they would be sent to this centre where they receive help instead of punishment.  They would not feel the necessity to change for the better because they are most likely put in there unwillingly.  As I stated above, the money could have been used to educate people about the abuse of alcohol and drugs.  Perhaps this sobering centre would prevail but it would be awhile before there is any display of success or failure.

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