BlackBerry Ltd (NASDAQ:BBRY) (TSE:BB) is apparently losing T-Mobile users after the recent agreement in which both companies disengaged due to a U.S. licensing agreement. The network operator is offering its subscriber a bonus of $200 if they switch to Samsung, which is hurting BlackBerry because it is more about changing brands rather than updating. As a result, around 50,000 T-Mobile subscribers have decided to switch to other smartphones.
Blackberry users switching to Samsung
So we can assume that most of the BlackBerry subscribers who are switching are going for Samsung, considering the lucrative terms that the deal offers. This $200 deal will continue until the end of the year. The carrier also offers a $100 deal that allows users to switch to another smartphone (which is not a BlackBerry or a Samsung), according to Ubergizmo.It can be safely assumed that BlackBerry users at T-Mobile are on the verge of extinction.
At the time of the dispute, BlackBerry Chief Executive John Chen did not make any effort to contain the spat. The company announced that it has abandoned the renewal of its T-Mobile License to sell its products after its April 25 expiration. Chen said that the company has had a cordial relationship with T-Mobile for many years, and at present, their strategies do not seem to work in favor of each other. Chen also said, “We hope to work with T-Mobile again in the future when our business strategies are aligned.”
Done with restructuring
The dispute between BlackBerry and T-Mobile might have been due to declining sales of handsets. However, it looks that the Canadian firm’s woes might be falling. The Canadian smartphone maker recently said that the transformation process is working and that there would be no more layoffs from this point on.
Chen assured employees that if any sudden market downturn does not occur, then BlackBerry will add employees in areas such as product development, sales, and customer service, beginning in modest numbers. Chen showed gratitude to those who stood by the company during the process and said that the company will remain focused on its core segments as well as upcoming phones such as the Passport and Classic devices. The company has reduced its headcount by approximately 60% over the past three years.