Research in Motion has set something in downward motion : The prices. There is no denying that the company is in trouble as it reported a $125 million loss in Q4 2011. Now it wants to gain economies of scale, at least in India, by cutting down the prices. It has already slashed the prices on some models by 26%.
Economies of scale is an interesting concept. Manufacturers hope to price a device less, sell more and gain from the volumes. In fact RIM has been doing that for quite some time. Late last year it has slashed the price on its Blackberry Playbook which resulted in a uptick in the sales curve. It also tried a buy a tablet and get a phone free option.
RIM is following a strategy which is opposite to what Apple typically employs for India.
While economies of scale seems like a slick term for this concept, all of this looks like desperate moves to get things going. Blackberry might have missed a trick or two. Mind you, Blackberry phones are still popular India, especially among youth. Price cuts could make them more appealing, but excessive price cuts could make the consumers skeptical.
Does a priced-down Blackberry appeal to you more than a Samsung phone?