Rogers has been experiencing a $30 million budget shortfall and at the same time, Rogers recently enacted a price hike on the three-year contract prices for some of its most popular BlackBerry devices. The price increases saw the Curve 83xx go to $149.99 (up $50), Curve 8900 to $224.99 (up $25) and the Bold go to $299.99 (up $50). The following email from a Rogers exec, details the budget shortcomings:
On Wednesday, the senior executive team realized that they were over budget $30 million dollars on their cost of acquisition. How I don’t know why it took so long. [sic] They then did their knee jerk response. Your DBM’s and other local managers know nothing more than this and are in the dark as much as we are on this other than we were told VERBALLY that in market quotes would be honored for 30 days from today. The exception lists are due Monday and only for non named accounts. I have requested in every region for a positioning statement and to this moment have not heard a response. If it makes you feel any better the retail has even more uncertainty.
Is this a case of budget shortfalls being passed down to the consumer?