Killer BlackBerry deals have market abuzz

The online market in the sale of BlackBerry phones is experiencing a predictable surge in sales and a steep drop in prices as consumers desperately off load phones in fear of the impending ban on its services from October 11.

In the 48 hours since the surprise announcement by the UAE's Telecommunications Regulatory Authority (TRA) to suspend BlackBerry messenger and email browsing services, citing national security concerns, the market mechanics have already set into motion with prices of a brand new Bold 2 9700 factory unlocked phone falling as low as Dh400 on classifieds website Dubizzle.com; the average price of this instrument at your average retail store is approximately Dh1,900.

This 80 per cent dip in price may not be mirrored in other popular e-commerce websites, but the discounted rates still haven't failed to impress several consumers.

"I just purchased a new, unlocked Bold 2 for Dh1,110 from Souq.com," said Nihaal Sahini, 29, account executive.

"I usually monitor the website for deals and noticed a surge in online advertisements for BlackBerrys on Sunday, the day the TRA news broke.

"I waited until Tuesday, realising that this is fast turning into a buyers market and prices would get more competitive.

But as soon as news started to circulate that makers Research In Motion was in talks with TRA for a possible solution, I snapped up a phone immediately before prices stabilised again."

Several buyers believe with the news of Saudi Arabia's suspension of services from Friday, followed by Kuwait's stand against RIM, prices could dip even further with a supply surge if no solution is hashed out soon.

Effects are already visible with one company, The Green Foundation (TGF), which collects used computers and mobile phones to be reused and recycled, seeing nearly 40 people trade in their phones within 12 hours of the ban being announced.

"We were inundated. We received 37 BlackBerrys within 12 hours, direct from consumers, and two large corporates have fixed meetings to discuss recycling of all staff BlackBerrys at a corporate level," Johnathan Tozer, Marketing & Charities Liaison Director for the foundation, told Emirates247.com.

The foundation runs a stock-market-like operation at the website cashformobiles.me, buying old phones for anywhere from Dh90 to Dh600. Offer prices reflect real time market dynamics, and prices vary depending on demand and supply, Tozer says.

A further 50 inquiries came in over the same period, and Tozer says he expects consumers will continue to want to trade in their phones."I think a lot of people want to see exactly what happens after October 11 and what services are provided to BlackBerry users."

One user, interior designer Pratyush Sarup, told Emirates247.com: “I need to see how exactly these alternatives work and what packages are on offer."

There are still over 200 of the once-desirable handsets on sale at Dubizzle.com, while Souq.com has over 320 such handsets on offer.

Secondary market

Meanwhile, the impending ban has spelt good news for some enterprising minds, who are turning this into a profitable exercise on the international market.

Speaking to Emirates 24|7 anonymously, one such consumer said: "The Bold 9700 and the Curve 8520 are very popular in the Indian markets, retailing at Rs29,000 and Rs13,800 respectively. All I have to do is purchase one of each on Souq.com, which cost Dh1,200 and Dh950, and I make a tidy profit of nearly Dh1,200 right there.

Another middleman, who simply goes by the name of Omar, has his number posted on Dubizzle.com to buy used/new BlackBerry phones.

When we called him, pretending to be a potential seller, he said: "I will purchase a used Bold 2 phone for Dh400. But I take other models too, locked or unlocked does not matter."

When we argued the price was too low, he responded: "Look, I have other customers who are ready to sell their phones at this price. I have received over 100 calls in the last two days because people want to sell now with this ban. You want to or not?"

Further probing had him reveal the phones would be shipped to North Africa to be sold in the secondary market, before he got agitated and hung up.

For customers such as marketing professional Barbie K who says she wants to "chuck my phone in the bin" because last year's spyware patch incident has broken her trust in any new solutions put forward by telecos Etisalat and du, TGF has set up bins in Choithram supermarkets for people to drop off their unwanted laptops/phones.

"We anticipate a lot more BlackBerry trade-ins over the next few months," Tozer says.

There are currently an estimated 500,000 BlackBerry users across the UAE.

The organisation operates a zero-landfill policy, so electronics that are traded in are either broken down into their component parts or refurbished and sold in countries where there continues to be high demand, such as Africa, Asia or mature markets like the United States and United Kingdom, Tozer says.

While a deal has still to drawn out between the authorities, RIM meanwhile has postponed the launch party of its new BlackBerry Pearl 9105 that was to be held this evening at the Prive nightclub at Armani Hotel.

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