RIM: Amazon's BlackBerry Torch Pricing Not A 'Price Cut'

The comments, by a RIM spokesperson, were made Tuesday to CRN.com, Computerworld and other outlets, following widespread reports that RIM and its distribution partners were slashing prices for the Torch 9800 to make up for sluggish sales out of the gate.

The Torch, which went on sale on Aug. 12, is also available through AT&T retail outlets and at Best Buy for $199.99. Amazon lopped $100 off that price almost immediately, but to call it a "price cut" -- and not an Amazon promotion -- is "inaccurate and misleading," the RIM spokeswoman said.

"It is true that Amazon is offering an amazing price and this is great news for customers, but it is inaccurate and misleading to suggest that a price cut has been implemented," said the spokesperson in an e-mail to CRN.

The Torch 9800 is the first smartphone to use RIM's BlackBerry 6.0 OS, and saw a heavily hyped launch in early August to bolster BlackBerry's presence against rivals like Apple's iPhone and a glut of feature-rich Google Android smartphones. RIM hasn't confirmed initial sales figures, but some early sales reports put the number of Torches sold at launch at about 150,000 units.

Mixed reviews greeted the BlackBerry Torch 9800 out of the gate: some found it a big step forward for a smartphone line in need of a refresh, while others found its features compelling for a BlackBerry, but not enough to challenge power-packed Android and Apple rivals.

Costs to build the BlackBerry Torch appear to be expensive when directly compared with iPhone; market research firm iSuppli said this week that the 9800 carries an estimated bill of materials of $171.05, with cost to assemble at about $12.

The Torch has done little to spark RIM's slumping stock. Shares of RIM were down both Monday and Tuesday this week, with a number of analysts lowering or hedging their ratings on RIM to see if Torch sales would pick up.

Shaw Wu, an influential analyst with Kaufman Bros., wrote Monday that the firm finds the Torch "strong enough to prevent BlackBerry customers from defecting and perhaps win some Android and iPhone customers who value the physical keyboard, social networking and battery life."

Andrew Hickey contributed to this article.