BlackBerry (NASDAQ:BBRY) proves the age-old expression: When it rains, it pours.
The Canadian smartphone company hasn’t exactly had a good summer. Not only has it already suffered a disappointing earnings report, the 31 percent shares drop that subsequently followed, and the removal of two of its top executives, BlackBerry is now seeing embarrassing price drops on its products.
The BlackBerry Z10 went on sale in the U.S. in March for around $199, and while consumers usually have to wait an extended amount of time for new devices to see discounts, for this phone, they’re in luck — the smartphone company’s new retailers have already started discounting the Z10.
According to The Wall Street Journal, Best Buy (NYSE:BBY) and AT&T (NYSE:T) used to offer the Z10 for $199 on a two-year contract. Now, it’s down to $49. Likewise, Verizon Communications’s (NYSE:VZ) Verizon Wireless is now offering the phone on a two-year contract for $99. Needless to say, this is a huge drop for a device that originally went for $700 without a contract.
Although BlackBerry remained fairly mum about how its last-ditch effort of BlackBerry 10 devices were performing, the results became all too clear when the company’s most recent earnings report in late June showed that the company was in big trouble. One shareholder called the Z10′s launch a disaster and shares dropped 31 percent by the close of markets the Friday the report was published.
To make matters worse, BlackBerry now has to replace two of its chief executive after Richard Piasentin, BlackBerry’s head of U.S. sales, was let go, along with T.A. McCann, the vice president in charge of all social networks at BlackBerry. The company hasn’t commented on either of the executives’ departure, and it is still not entirely clear whether the moves were voluntary or the result of a firing.
What is clear, however, is that the job cuts are probably not over. BlackBerry currently employs about 11,000 workers but already had to lay off about 5,000 employees during the year. The trend will only continue as lackluster sales effectively dig the company deeper into a hole.