BlackBerry losing its grip in emerging markets

BlackBerry losing its grip in emerging markets
Indonesia has long been a BlackBerry hot zone. In 2011 the iconic Canadian manufacturer had over 43% market share. Based on figures released by IDC, the dominance has slipped to just 14% in 2013.

BlackBerry has the Android operating system to thank for that, now holding over 80% market share. Even BBM is not keeping the user base on board, as BlackBerry has been losing ground to WhatsApp.

With shrinking market share comes shrinking revenues. Just two fiscal quarters earlier, BlackBerry could account for nearly $520 million in revenues from the Asia Pacific region. Now, with the most recent quarter ending November 30th, those revenues are down to $169 million.

BlackBerry will be making a push back into its stronghold markets with a new device designed and built by Foxconn. That device, codenamed Jakarta and known as the Z3, will be introduced at MWC 2014, but Indonesia will be the first market to get the device commercially. Given the current climate in Indonesia however, it is anybody’s guess as to how well sales will go.

Shopkeepers in Jakarta, Indonesia say that sales of BlackBerry smartphones have ground to a halt. Where once they could sell dozens of BlackBerrys a day, some are down to just one or two a day, or none at all. The app ecosystem and bang for the buck with Android handsets are the primary drivers for this trend.

BlackBerry CEO, John Chen, is still committed to the developing markets though and with the Z3 the commitment is twofold, “This will be one of the first itmes we deliver as part of the Foxconn partnership. The Indonesian market remains important for us.”

source: The Wall Street Journal

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9 Comments

1. AfterShock

Posts: 4146; Member since: Nov 02, 2012

If BB don't release something packing a big pair under a big screen soon...they could be done. Palm had a decent os but failed to release any hardware beyond blah, now it's hiding behind your TV an fridge instead of being in someone's hand.

2. networkdood

Posts: 6330; Member since: Mar 31, 2010

It is time to be like Sega and just be a software company - remember that song that goes something like "...know when to fold 'em...know when to walk away and know when to run."? Well, it is time, Blackberry, time to fold 'em, time to walk away, while you still can....

3. Droid_X_Doug

Posts: 5993; Member since: Dec 22, 2010

I honestly don't think that being just a software company is going to rescue BB. Their OS10 is hard to use. Their handsets are soo far behind the power curve. They are trying to re-form a business strategy around the enterprise, while the enterprise users are running to either Android, iOS or WP. They can't claim a credible franchise for security, since Android, iOS and WP can claim similar capability. Where is a viable business plan for BB?

4. networkdood

Posts: 6330; Member since: Mar 31, 2010

Well, you may be correct on that one as BB sounds like it is just redundant and no longer has any pull in the marketplace...maybe someone will buy them out...

6. PBXtech

Posts: 1032; Member since: Oct 21, 2013

Not sure about that, their hardware is better than their software. Their keyboards are about a gold standard as you can get, just ask Seacrest. Messaging and security software is solid though, they just need a wow factor soon.

5. alterecho

Posts: 1106; Member since: Feb 23, 2012

Not a surprise. All their devices are priced too high!

7. apiskula

Posts: 578; Member since: Jan 25, 2013

Just go away already. Your done!

8. androiphone20

Posts: 1654; Member since: Jul 10, 2013

I've seen this happening when I last visited South Africa, and the number one OEM taking down BB is Samsung :/

9. androiphone20

Posts: 1654; Member since: Jul 10, 2013

I've seen this happening when I last visited South Africa, and the number one OEM taking down BB is Samsung :/

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