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.
