BlackBerry Ltd Passport Selling For $1825 In Gray Market

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BlackBerry Ltd Passport Selling For $1825 In Gray Market
jieyirain / Pixabay

The gray market for BlackBerry Ltd (NASDAQ:BBRY) (TSE:BB)’s Passport is developing, and the phone was selling for $1,825 a few days ago, which is considerably more than the actual price. On Amazon.com, Inc. (NASDAQ:AMZN)’s website, the Passport is available at $799, while in the company’s online store, it is available for $599.

Mixed reactions over BlackBerry Passport shortage

The seller on eBay might be charging a high price for the Passport for delivering the phone immediately, whereas customers have to wait for weeks if they prefer to buy a phone from the official store or Amazon. The gray market for the Passport is both unexpected and exciting for the company, as sales in the secondary market indicate demand for the product.

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Excluding the 200,000 pre-orders, “an incremental 475,000 unit sales would return BlackBerry to profitability in its November quarter,” says a report from Seeking Alpha.

Consumers in Malaysia complained about the limited stock of BlackBerry, and analysts have been discussing whether the limited availability of Passport will work in favor of the company or against it. Analysts at Canaccord Genuity lowered their BlackBerry revenue estimates in their research note on Oct. 1.

The Canadian smartphone maker guided for conservative revenue on a sell-through basis rather than on shipments into the channel. A few things that concerned the analysts were limited availability of the Passport that will lead to a slow down in sales. Also the delay in revenue recognition will hurt the company’s revenue for the second half of the fiscal 2015 year, believe the analysts.

Chen content with the demand

Recently BlackBerry CEO John Chen said that he was happy that customers could not buy a Passport, indicating robust demand for the phone. Since Chen became CEO, the Passport is the first new major device from the Canadian firm. While speaking at the MIT Enterprise Forum in Hong Kong Chen, said, “I’m glad to have inventory issues. It shows that people want the phone,” said Chen. “We took a very conservative approach and didn’t order too many.”

Chen gave the idea that the company is following Nike Inc (NYSE:NKE) and Apple Inc. (NASDAQ:AAPL)’s marketing strategies. BlackBerry never had a very strong hold on consumer marketing, but the limited availability of the phone “serves as de facto public relations,” says the report.

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Aman is MBA (Finance) with an experience on both Marketing and Finance side. He has worked as a Risk Analyst for AIR Worldwide, and is currently leading VeRa FinServ, a Financial Research firm. Favorite pastimes include watching science fiction movies, reviewing tech gadgets, playing PC games and cricket. - Email him at amanjain@wordpress-785388-2679526.cloudwaysapps.com
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11 COMMENTS

  1. That’s what they declared, I am going to be very anxious when waiting for amazon’s good news. I think that is why amazon always out of stock. They actually lack of stock. So everyday maybe amazon just sell 10. Then everyone who order on amazon need to waiting in a list maybe. The problem is customers do not know how long will they have their phone. Amazon even do not guarantee they will get their phone. And I found it very interesting that in the middle of Oct, the price on amazon even becomes 699, then fall back to 599 recently. Really interesting. But whatever, I just been notified by amazon that I can have my phone next week~ haha~ I just wait for 3 days after I order it on amazon. hahaha~

  2. It was a rehash of a SA article with no real proof. We see Passports selling for 600 to 900 on ebay. People are buying them just to resell them for more. I’m pretty sure that the market for this phone is only 1 million people. That is very small for BB10

  3. Using mine for Four weeks and it’s amazing. Screen width is great to view documents and web browsing. Have all the big android apps running. Keyboard is second to none. Build quality is top notch. Very happy I pulled the trigger on this purchase.

  4. The case is: I need to have a new phone now, and I have two choice, iphone 6+ and blackberry passport. I have waited passport for almost one month, but their website is always out of stock. Almost lost my patience, iphone 6+ is very easy to order with an regular price at any AT&T store or online. What’s wrong with passport? Are you crazy?

  5. I am surprised which gray market are you talking about? Publishing articles without the facts is not good. Always backup your claim with proof.

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