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| Research In Motion reported a smaller-than-expected quarterly loss on Thursday and the struggling BlackBerry maker managed to increase its cash pile |
NEW DELHI: Struggling business phone maker BlackBerry
is betting big on Indian youth as the company works hard to shrug off
its 'corporate only' image to gain a bigger share of new buyers.
However, market analysts doubt the company's plans and feel that
BlackBerry may not be able to cut much ice in India, considering that
the real play comes at lower price points where the company is yet to
venture into.
Absence of an apps-heavy operating platform like Android is another factor that can take the sting out of Blackberry's charge.
But Sunil Dutt, India MD of BlackBerry-maker Research In Motion (RIM), doesn't share the pessimism. The company has a lot of action pending for India, especially as it digs deeper into the market while offering flagship products like Curve 8520 at reduced prices, he tells TOI. "There are clear priority areas for BlackBerry in India and these include getting relevant products to market, investing in the brand, and building a strong channel to increase the reach of our products," Dutt says. The company recently unleashed a massive campaign running with a tagline 'action starts here', featuring its unique red icon or 'Splat' as a symbol of action. The Splat signifies a call for those who seek action and find new opportunities, Dutt says. This is one of the many efforts that Blackberry is making to enlarge its customer base beyond the traditional corporate or enterprise buyers. "We were a more enterprise-focused company earlier. But I believe that the transition is on the right track now."
However, tough times globally and pressure on revenues and margins may leave little room for the company to play with. The loss of market to Apple's iPhone and Google's Android in the key north American market has seen RIM's share of global smartphone market, which it once dominated, go down to 4.8% from 12% a year earlier, according to research firm IDC. Dutt, however, says that against the Western markets, BlackBerry still enjoys high brand equity in India. "The numbers may be flattening in some markets, but India continues to remain strong for us. Moreover, we will focus on youth by positioning the brand as more youthful," he says, giving examples of how BlackBerry's popular messenger service (BBM) comes at special lower tariffs.
But market watchers are not too excited. Anshul Gupta, principal research analyst at Gartner's mobile devices team, feels that BlackBerry's efforts are still not in tune with market realities. "I do not see a huge growth prospect for BlackBerry in India. Their sales have been stagnant here and share has also declined," Gupta says, though refusing to share exact data.
Source:- The Times Of India
Absence of an apps-heavy operating platform like Android is another factor that can take the sting out of Blackberry's charge.
But Sunil Dutt, India MD of BlackBerry-maker Research In Motion (RIM), doesn't share the pessimism. The company has a lot of action pending for India, especially as it digs deeper into the market while offering flagship products like Curve 8520 at reduced prices, he tells TOI. "There are clear priority areas for BlackBerry in India and these include getting relevant products to market, investing in the brand, and building a strong channel to increase the reach of our products," Dutt says. The company recently unleashed a massive campaign running with a tagline 'action starts here', featuring its unique red icon or 'Splat' as a symbol of action. The Splat signifies a call for those who seek action and find new opportunities, Dutt says. This is one of the many efforts that Blackberry is making to enlarge its customer base beyond the traditional corporate or enterprise buyers. "We were a more enterprise-focused company earlier. But I believe that the transition is on the right track now."
However, tough times globally and pressure on revenues and margins may leave little room for the company to play with. The loss of market to Apple's iPhone and Google's Android in the key north American market has seen RIM's share of global smartphone market, which it once dominated, go down to 4.8% from 12% a year earlier, according to research firm IDC. Dutt, however, says that against the Western markets, BlackBerry still enjoys high brand equity in India. "The numbers may be flattening in some markets, but India continues to remain strong for us. Moreover, we will focus on youth by positioning the brand as more youthful," he says, giving examples of how BlackBerry's popular messenger service (BBM) comes at special lower tariffs.
But market watchers are not too excited. Anshul Gupta, principal research analyst at Gartner's mobile devices team, feels that BlackBerry's efforts are still not in tune with market realities. "I do not see a huge growth prospect for BlackBerry in India. Their sales have been stagnant here and share has also declined," Gupta says, though refusing to share exact data.
Source:- The Times Of India
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