Research in Motion (RIMM) Calls BlackBerry Torch Price Cuts "Inaccurate"
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Research in Motion Ltd. (NASDAQ: RIMM) said Wednesday that reports that Amazon.com Inc. (NASDAQ: AMZN) has cut the price of the new BlackBerry Torch 9800 smartphone to $99.99 "inaccurate and misleading."
According to a report from The Wall Street Journal, Amazon has been selling the new device at the discounted price since its launch on August 12 as a promotional strategy that many retailers use to sell new products.
Amazon has been receiving commissions from RIM to sell the phone with a two-year contract, helping the retailer offset the lower price of the device.
AT&T Inc. (NYSE: T), the exclusive U.S. wireless carrier of the BlackBerry Torch, is selling the device for $199.99 with a two-year contract, as are retailers Best Buy Inc. (NYSE: BBY) and Radio Shack Corp. (NYSE: RSH). Wal-Mart Stores Inc. (NYSE: WMT) has been selling the device for $179.99 with a two-year contract.
A spokeswoman for RIM said, "It is true that Amazon is offering an amazing price and this is great news for customers."
This is not an uncommon event to see a new phone immediately discounted through secondary retailers.
The new Motorola Inc. (NYSE: MOT) Droid 2, released last week by Verizon Communications Inc. (NYSE: VZ) for $200 but has been advertised on Amazon for the discounted price of $150, while the BlackBerry Bold 9700 from AT&T is currently listed on the online retailer for a penny.
Shares of RIM are up 46 cents to $50.71 in late market movement Wednesday, while shares of Amazon are up 79 cents to $129.65.
According to a report from The Wall Street Journal, Amazon has been selling the new device at the discounted price since its launch on August 12 as a promotional strategy that many retailers use to sell new products.
Amazon has been receiving commissions from RIM to sell the phone with a two-year contract, helping the retailer offset the lower price of the device.
AT&T Inc. (NYSE: T), the exclusive U.S. wireless carrier of the BlackBerry Torch, is selling the device for $199.99 with a two-year contract, as are retailers Best Buy Inc. (NYSE: BBY) and Radio Shack Corp. (NYSE: RSH). Wal-Mart Stores Inc. (NYSE: WMT) has been selling the device for $179.99 with a two-year contract.
A spokeswoman for RIM said, "It is true that Amazon is offering an amazing price and this is great news for customers."
This is not an uncommon event to see a new phone immediately discounted through secondary retailers.
The new Motorola Inc. (NYSE: MOT) Droid 2, released last week by Verizon Communications Inc. (NYSE: VZ) for $200 but has been advertised on Amazon for the discounted price of $150, while the BlackBerry Bold 9700 from AT&T is currently listed on the online retailer for a penny.
Shares of RIM are up 46 cents to $50.71 in late market movement Wednesday, while shares of Amazon are up 79 cents to $129.65.
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