Retailers Clearing Out BlackBerry Z10 Smartphone

Despite fresh hardware designs and a completely new mobile operating system, Canadian smartphone company BlackBerry is still having trouble selling its devices south of the 49th parallel.

That's why several retailers have now drastically reduced the price of the BlackBerry Z10 smartphone.

According to reports, Amazon.com and major electronics retailer Best Buy have both slashed the price of the BlackBerry Z10 -- a touchscreen device that resembles the iPhone -- to $49 with a two-year contract.

The device, which went on sale just four months ago, originally cost $199 with a contract. (Source: venturebeat.com)

Meanwhile, AT&T and Verizon Wireless are selling the BlackBerry Z10 for $99 -- less savings, but still half the original price.

No Cause for Concern, BlackBerry Insists

It's important to note that heavily discounting smartphones is by no means new or unique. For example, Samsung recently slashed the price of its very popular Galaxy S3 device.

However, in that case retailers and Samsung were hoping to make room for the new Galaxy S4 smartphone.

For its part, BlackBerry (formerly known as 'Research in Motion') says it too plans to introduce a new Z10 in the coming months.

"It's part of life cycle management to tier the pricing for current devices to make room for the next ones," noted a BlackBerry representative. "This is just one element of our marketing strategy that will ensure we remain aggressive in a very competitive market landscape." (Source: wsj.com)

Analysts Alarmed by Early Price Cuts

But experts say the price cuts are coming too soon after the Z10's original launch -- meaning they could be a response to poor sales.

The Wall Street Journal's Will Connors draws parallels with Nokia's Lumia 900, which received heavy price cuts just three months after its 2012 launch. The problem there: poor sales. (Source: wsj.com)

On Friday BlackBerry shares were down 1 per cent to $9.24. Overall, company shares have plummeted 36 per cent since the firm's last earnings report.