Two-fer BlackBerries at Verizon Wireless: Carrier extends BOGO to all BlackBerries: Indication that sales of the BlackBerry Storm are slowing?

The wireless pundits are chattering about a new offer from Verizon Wireless. The nation’s largest carrier is offering a buy-one-get-one-of-equal-or-lesser-value-for-free promotion on the most popular smartphone brand – Research In Motion Ltd.’s BlackBerry – in the United States.
That’s technically a BOGOOEOLVFF offer, or BOGO for short. The offer is good until March 31, and covers all BlackBerries offered by Verizon Wireless including the highly subsidized and heavily marketed marquee BlackBerry Storm. The Storm is RIM’s first touchscreen handset and received mixed reviews upon launch.
Brenda Raney, spokeswoman for Verizon Wireless, acknowledged that the promotion – which requires two-year contract activations – should boost the number of subscribers with data plans, which are higher average revenue per user (ARPU) subscribers. So should the carrier’s offer of free BlackBerry Pearls (silver or pink), while supplies last – with that two-year, voice-and-data contract.
As for the Storm specifically: If you fancy the BlackBerry Storm then you get two Storms for $200. That’s $100 each, right?
No, Raney explained patiently, that’s $200 (actually “$199.99”) for one, plus you get one free.
Could this promotion reflect a tailing off of Storm sales, which were about 1 million between the device’s launch on Nov. 21 and Verizon Wireless’ earnings call last month?
No, Verizon Wireless does BOGO promotions all the time and this is no different, Raney said, except it is being done with a smartphone this time – the first time ever, according to a report by analyst Brad Akyuz at Current Analysis.
“Verizon has been the biggest advocate of BOGO promotions, which have been a significant factor in the carrier’s impressive organic subscriber growth for years,” Akyuz wrote. “Extending this successful promotional implementation from feature phones to BlackBerry smartphones is a rational move, considering that the mandatory data plans ($30 for unlimited BIS/Web browsing or $45 for unlimited BES/Web browsing) significantly reduces the time to recoup the subsidy.”
“However,” Akyuz added, “Verizon Wireless’ decision to add the Storm to the mix could be an indication that sales of the carrier’s flagship smartphone are slowing after selling a million units since launch, which is already well off the pace of the iPhone 3G’s initial sales.”
“This new BOGO promotion could help the carrier … keep Storm sales momentum going in the face of withering reviews of the product,” the analyst wrote.
But, he warned, it could also spark consumer backlash from those who recently paid full price for the Storm – just as Apple Inc. encountered when it cut the initial price of the iPhone, then gave disgruntled consumers $100 vouchers for use at Apple’s flagship stores.
Raney pointed out that Verizon Wireless’ standard, 30-day return policy means that anyone who purchased a Storm in the last 30 days can return it, or get a second unit free.