BlackBerry’s long-standing relationship with T-Mobile US looks set to come to an end as the Canadian smartphone maker announced it would not extend a license for the U.S.-based carrier to continue selling its devices past April 25.
“BlackBerry has had a positive relationship with T-Mobile for many years,” explained BlackBerry CEO John Chen in a statement. “Regretfully, at this time, our strategies are not complementary and we must act in the best interest of our BlackBerry customers. We hope to work with T-Mobile again in the future when our business strategies are aligned. We are deeply grateful to our loyal BlackBerry customers and will do everything in our power to provide continued support with your existing carrier or ensure a smooth transition to our other carrier partners.”
BlackBerry explained that current customers should not see any change in their service or support after April 25, and that it would work with T-Mobile US on providing customer service to customers remaining at the carrier or those that pick up a device prior to the cut-off date. BlackBerry also noted it would be working with other carriers on providing customers with “alternatives should they decide to transition to another carrier and remain with BlackBerry for their long-term device and service needs.”
The move comes weeks after T-Mobile US sent e-mails out to current BlackBerry customers enticing them to trade in their devices on a new Apple iPhone 5C. The move drew the ire of Chen, who condemned the move.
“I would like to remind you that our long-standing partnership was once productive and profitable for both BlackBerry and T-Mobile,” Chen wrote in a blog post. “I hope we can find a way forward that allows us to serve our shared customers once again. Notwithstanding the current challenge, we remain very excited about BlackBerry’s future.”
Analysts noted T-Mobile US’ initial move was likely an attempt to push leftover holiday inventory, especially on Apple devices.
“All other carriers and retailers had (and continue to have) massive promotions for iPhones in the face of slowing demand and may have moved more inventory over the holidays than T-Mobile,” explained Argus founder John Feland.
T-Mobile US attempted to smooth out the situation by allowing BlackBerry customers to trade in their current BlackBerry device for a $250 credit towards a new BlackBerry or a $200 credit towards any other smartphone offered by the carrier. T-Mobile US has been a long-time outlet for BlackBerry devices, at one point considered the biggest seller of BlackBerry devices into the enterprise market. T-Mobile US currently only offers BlackBerry’s Q10 smartphone in both new and refurbished iterations.
BlackBerry has seen its once dominate position in the smartphone market dwindle as rivals have taken advantage of consumer demand for applications and advanced devices. The company once commanded more than half of the U.S. smartphone market, but has since seen its share drop to the low single-digits.
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