Tomahawk, WI 04/30/2014 (Basicsmedia) – Earlier this month, BlackBerry Ltd (NASDAQ:BBRY) stated that it is not planning to renew a deal that would allow T-Mobile US Inc (NYSE:TMUS) to sell its products, a move that’s been labeled “risky” by the company as it struggles to steady its business under a hostile new CEO. The strategy came in just six weeks after a publicized conflict between the two companies. The premise was that T-Mobile was offering its customers the iPhone 5s for free in February and dubbed the promotion a “great offer” for BlackBerry customers.

A backlash to this offer prompted T-Mobile US’s CEOJohn Legere to reassure Blackberry and its users, of his company’s support. BlackBerry’s CEO, John Chen, in a blog post at the time, criticized T-Mobile for initiating operating the promotion.

Half Measures

In a statement made in late March, BlackBerry stated that it would continue to provide its services to the existing customers on T-Mobile’s network and those who wished to purchase products from the carrier’s leftover inventory. They believed that they were acting in the best interests of their customers, and they hoped to work with T-Mobile again in the future when their business strategies would be aligned.

BlackBerry did not elaborate upon why it was ending its relationship with T-Mobile and the latter could not be reached immediately for comment. The smartphone manufacturer said it was working intimately with other carriers to provide users with substitutesin the event that theydecide to switch over from T-Mobile’s network.

The three largest phone carriers in the U.S – AT&T Inc. (NYSE:T), Sprint Corporation (NYSE:S) and Verizon Communications Inc. (NYSE:VZ) – continue to sell BlackBerry devices.

Squeezing Its Margins

This decision makes BlackBerry look like they’ve adopted a more combative stance since Chen took company late last year, with a focus on cost-cutting in its sales channel. During a conference with media agencies at their headquarters last week, Chen stated thatthe company had already finished with much of the internal cost-cutting he had intended to do when he took charge in November and that further cuts should be expected within the confines of its sales channels.

Chen did not provide any details, but he’d hinted that a few of BlackBerry Ltd (NASDAQ:BBRY)’s carriers and distributors were being given a sizeable cut on the devices sold, which was resulting in their profit margins being squeezed. BlackBerry used to dominate the smartphone market till about four years ago, but its market share dwindled as it failed to keep pace iOS and Android.

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