Troubles increased in India for RIM

Don't let the kid on the next seat in the train, furiously typing away on his or her BlackBerry fool you. Despite the fact that Indian youth have bonded over BBM, the performance of the parent RIM and maybe even the launch of its latest product in India have revealed a number of holes in the phone maker's strategy. BE asks what's troubling BlackBerry, boys? 

Minutes before Research In Motion, the makers of BlackBerry, made an announcement at a press conference in Delhi, there was a definite vibe of anticipation. Tech hacks idly wondered just what was going to be unveiled, given that BlackBerry has a fairly conservative release schedule. 

The more optimistic were holding out for a glimpse of BlackBerry's OS 10 rumoured among the brand's faithful to be a potential Android-slaying, iOS-wrecking killer operating system; one that would propel BlackBerry back to the top of its game. But instead, BlackBerry amid much fanfare and celebrity preening unveiled the Curve 9220. 

At the Q&A and after, the questions flew thick and fast: why only a 2MP camera? Why no 3G? And why such a stiff price tag for a phone that lacked these two features? 

The device was launched at Rs 10,990; inexpensive for brand BlackBerry, but a tad pricey compared to other mobiles, even smartphones if one considers budget Android models fromSamsung, LG, Spice and Lava among others. 

The Curve offered unique features like a quick access BB messenger button and, critically, long battery life, something of a rarity in the smartphone category. 

FM radio, a feature that's bog standard even for phones that are sold at a tenth of the cost, made its way to Blackberry Curve. But to an audience weaned on revolution, having to settle for evolution was a disappointment. It was a dangerous reaction for any company to deal with; especially a tech firm that's been gradually losing its reputation as a pioneer. 

As one of the first smart-phones, BlackBerry had a dream run starting with the enterprise segment and slowly making inroads into the consumer space. 'Sent from my BlackBerry' soon became a ubiquitous signature; first for emails from globetrotting CEOs and later among the rank and file as well. Except of late, it has taken a beating globally, trounced by the iPhone on the one hand and a gamut of Android powered devices on the other. 

Its most recent financial results reveal a loss of $125 million. And shipments of 11.1 million, down 21% from the previous quarter. Reviews for its Torch series have been unenthusiastic and the game changing OS10 is expected to show only in the latter half of 2012. Says an industry insider, "They decided to step back and relax and that cost them. The engine has stopped innovating for some time." 

In some countries like India though, BlackBerry still counts among the contenders. According to Frost & Sullivan, it's at the third place in the Indian smartphone market with a share of 15%, trailing behind Nokia's 35% and Samsung's 40%. It's attracted a strong app developer network of 30,000 in India up from 4000 two years ago, according to a company source. 

More importantly, for a product that's worldwide reputation veers towards the stodgy, it has a strong traction with the youth. Observes Abhishek Chauhan, senior consultant, ICT Practice, Frost & Sullivan, South Asia & Middle East, "In India, they've been taking segmentation seriously, targeting the youth. I don't feel India will be a danger space for them if they launch affordable devices and data plans for their consumers here." 

The youth connect has been built in part on the back of initiatives like the BlackBerry Boys campaign; a co-branded effort with Vodafone, currently in its second year. On the distribution front too, BlackBerry was quick to realise there was a world beyond the metros. It is currently present across 250 cities and according to RIM India's managing director, Sunil Dutt it continues to expand. 

However, BlackBerry India has not remained unaffected by the pressures facing its parent. The pricing strategy has changed: the jury is out on just why this is happening and what it will lead to. Of late, there have been price cuts across its portfolio.