Verizon Wireless will sell Research in Motion Ltd.'s ( RIMM) first touchscreen smartphone, the Blackberry Storm, on Nov. 21 for $200 with a two-year contract.
The wireless venture of Verizon Communications and Vodafone Group Plc said the first touch-screen phone from Research In Motion would cost $199.99 after a $50 rebate for customers who sign a new two-year service contract.
Pricing for the highly anticipated device, which goes on sale online and in Verizon stores on November 21, has been the source of much speculation after Vodafone said October 31 that it would give the Storm free to UK customers who sign a contract.
U.S. carriers in particular often shoulder a big part of the price of cell phones in exchange for getting customers to commit to a two-year service contract but analysts have worried about the effect a hefty subsidy on the Storm would have on Verizon Wireless's profit margins.
AT&T Inc , the exclusive U.S. provider for iPhone, has already shown that its subsidy for the latest iPhone has hurt its profits in the recent quarter.
For RIM, this is the latest phone to be launched in the U.S. following the much-delayed release of the Blackberry Bold for AT&T and the Blackberry Pearl Flip for Deutsche Telekom AG's (DT) T-Mobile USA. The holiday season is an important one for RIM as it looks to protect its position in the smartphone market. Apple recently overtook the company for the No. 2 position, according to market research firm Canalys. Nokia Corp. (NOK) remains the No. 1 player because of its global reach, but it is steadily losing share in the segment.
But unlike other touch screen devices, the Storm's screen indents slightly when it is pressed, a feature designed to attract users who have been hesitant to move away from phones with physical keypads for fear of having difficulty typing.
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