BlackBerry Torch price cut in half at Amazon after Goldman Sachs deems launch "underwhelming"

August 16, 2010 | Devindra Hardawar

Only a few days after the BlackBerry Torch’s August 12 launch, Amazon has slashed the phone’s price in half from $199.99 with a two-year contract, down to $99.99. The news comes after a report from Goldman Sachs today that called the Torch’s launch “underwhelming”, according to the Street Insider.

Goldman’s report noted that most of the stores it called didn’t sell out of the Torch and that most purchases were made by current BlackBerry customers. Meanwhile, it found that sales of popular new Android phones like the Droid X and Evo 4G remained strong.

AT&T is still listing the BlackBerry Torch for $199.99, but it’s available at Amazon and other sites for $99.99, reports PC World. It’s unclear if the price drop comes from the retailers or RIM itself, but I’ve dropped a line into RIM for clarification. The Torch is a big deal for the company because it features a slide-out keyboard — so BlackBerry fans can still type on physical keys — with a revamped touchscreen operating system in BlackBerry OS 6.

While we don’t know for certain why the price was dropped, it’s fair to assume that it was in response to the Goldman report. It’s not surprising that RIM might drop the Torch’s price — after all, it’s much less powerful than competing Android phones and the iPhone 4, all of which retail for the same $199.99 price tag — but it’s certainly a shock that we’re seeing a lower price so soon. If it was a RIM move, it screams of desperation, and it also highlights how unwise it was to position the Torch as a high-end smartphone when it definitely wasn’t.

In addition to its slow processor (it runs at 624-megahertz compared to current Android phones with 1-gigahertz speeds), the Torch also boasts a diminutive 3.2-inch display with a low 360 by 480 resolution. Its display is smaller than the iPhone 4′s 3.5-inch screen, and much lower than the 854 by 480 resolution that the Droid X and Droid 2 feature. The Torch was released the same day as the much more capable Droid 2 — which also sports a slide-out keyboard — so there was little reason for anyone, besides the BlackBerry-faithful, to anticipate it.

That the Torch was launched on AT&T certainly didn’t help its situation. Heavy mobile users on other carriers would need more than a slightly revamped BlackBerry to move over to AT&T — perhaps the most hated mobile carrier in the U.S. thanks to its iPhone reception woes. And users already on AT&T have the choice between the much more appealing iPhone 4, or the newly released Samsung Captivate — part of its Galaxy S line of Android phones.

It remains to be seen if dropping the Torch’s price will increase its sales significantly. The lower price will likely help somewhat, but it certainly won’t fix RIM’s bigger innovation problem. If this is the best the company could come up with to compete with the iPhone and Android (which ousted BlackBerry in the last quarter as the top-selling mobile platform, according to one firm’s estimates), then RIM is clearly in trouble.

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Tags: Android, Blackberry, iPhone, smartphone

About the Author, Devindra Hardawar

Devindra Hardawar is VentureBeat's National Editor and lead mobile writer. He has been writing about technology since 2004, worked in IT support for several years, and studied philosophy at Amherst College. He now lives in Brooklyn, New York. You can reach him at devindra@venturebeat.com (all story pitches should also be sent to tips@venturebeat.com), and on Twitter at @Devindra.

Thomas8

RIM does not set prices at Amazon. To say RIMM cut its price in half is misleading, factually incorrect, and absolute propaganda.
http://www.devindra.org Devindra Hardawar

Propaganda? What exactly am I promoting? It's $99 at sites other than Amazon, which tells us something is afoot. I'm waiting to hear back from RIM on the matter, but don't be surprised when AT&T's store makes the drop too. They're just slower than other sites to show it usually.But to be clearer, I will update the piece–
intosh

Why do you want a 1Ghz processor? For bragging rights?If the OS runs well with less and it feels quick, isn't all that matters? Just because Android NEEDS a CPU 1Ghz doesn't mean any phone, running any OS should have that too.FYI: the “almighty” iPhone 4's CPU isn't clocked at 1Ghz either.
anilchow22

if other smart phones has 1 Ghz , Our crackberry needs more than 1 Ghz ( Honestly it is junk software from my 3 yrs exp as user & developer). RIM missed the last chance in the smartphone kingdom.Till Now they are using more resources (shareholders money) to produce most unintelligent phones & charging more from customers (who r fallen into its its hardware trap).There is no reason use immmature,unfriendly blackberry Smart Phones (probably not that smart) when we are running with time
http://twitter.com/MortimerEsq Michael Mortimer

As a long time BlackBerry user up until the Bold 9700 (now using a T-Mobile Vibrant, and an HTC HD2 before that, and Touch Pro2 in 2009) I can tell you what the problem is:The goofy vertical keyboard. People did not like it on the Pre and they won't (and don't) like it on the Torch.Also, you are correct on the display. People want 3.5″ or larger. And the Samsung Vibrant (Samsung Galaxy S) 4″ display is becoming the default “sweet spot” size. (4.3″ is too big, 3.6″ is not big enough.)So too small display coupled with the vertical slider keyboard = fail.
http://www.devindra.org Devindra Hardawar

Looking at other sites playing with the Torch, it was lagging at just web browsing. And the iPhone 4 may not be 1Ghz (it's most likely around 800Mhz), but the chip itself (don't forget it's an Apple processor) is designed specifically for iOS in a way that BlackBerry's hardware isn't.It's not about bragging rights, it's about having a phone that will still perform halfway decently in a year–
http://pulse.yahoo.com/_A76CM3BNJ5QWY6IXSSODK6E7GQ James

I was a diehard Blackberry user until I saw the Torch. The blurb had gotten me so excited since I'd longed for a slicker, more powerful user experience and better browsing. Playing with it in the AT&T store I could have not been more disappointed. The keyboard felt horrible coming from the original Bold, the screen looked so chunky and dated, while the O/S just felt sluggish compared to iPhones and Android phones. I went straight over to the iPhone 4 and was converted immediately. The screen is simply beautiful, the nicest and most legible display of any gadget in history. It's slick and a pleasure to use. And I've gotten push email working perfectly. I also have it synced with multiple Outlook calendars through Pocket Informant, the best organizer app I've ever used on a phone. The only thing that Blackberry beats it at are it's profiles and notification configurability (iPhone's alarms too quiet, lack of LED notifications annoying). If iPhone fixes these problems, which seem to be universally complained about, it would destroy Blackberry. I really don't understand what's holding them back.
kalel77

Ok, so as a journalist, shouldn't you do research prior to writing an article? Amazin launched at $99. Plus, a BlackBerry doesn't need huge processor like an Android phone because it's not a power and data hog.

Check it before you wreck it.
nandA365

im getting a bbt for my Birth Day on Friday but i honestly think that bbt is better than the i phone 4 i was one a user and it was hard to get used to saying the on screen keyboard was a hassle. i honestly think that AT&T should bring the bbt to other companies like version or t mobile and they would get a lot more sales saying the number of people with a running contract on Verizon t mobile and sprint would want one.