RIM Abandons High-End Markets to Emerging Markets for Low-End Battles

According to foreign media reports, with Nokia's Asha series, Nokia's pricing in emerging markets is actually competitive and realistic. So for RIM, is the company able to abandon its dream of trying to compete in the high-end market and start a tough, low-end battle in emerging markets?

This management attitude seems difficult to reach. For RIM, Apple is not a realistic goal at all. The company has managed to find low-end areas that the low-end iPhone can't reach.

RIM local time announced on September 25 that its user base continues to expand, the news of Wall Street analysts eye-popping. The company has added 2 million users in the past 3 months. The user's growth has clearly come from East Africa, South Africa, the Middle East, Southeast Asia and Brazil. RIM's UK market began to decline because Apple and Samsung have continued to seize the British market in the past 12 months.

RIM's hope of survival depends on the success of low-end products. The company will launch low-end products in emerging markets in 2013. This is why it is worrying to focus management on expensive, high-end devices. Of course, RIM has a proud past as a high-end smartphone brand, but it has no future unless it can find a way to maintain its market share in re-emerging markets.

Recent signs from Brazil and Asia are not optimistic. Sales of the BlackBerry Curve have begun to slump due to the outdated technology of the device. The price of the BlackBerry 8520 has dropped to R$300. However, even if it is cheap enough to compete with Motorola Fire, Nokia Asha 303 and Samsung Chat, the BlackBerry 8520 is overshadowed. The price of some QWERTY phones has also been reduced to 200 reals.

The prices of the new BlackBerry Curve, Bold and Bold are not within the range of the Brazilian market. The price competition from Samsung, Nokia and Motorola has changed the Latin American market. RIM must find a low-cost weapon to fight this battle as soon as possible.

The Philippines is one of RIM's strongholds in Asia, where Bold and Torch prices are too high, between 15,000 and 27,000 Philippine pesos. Even the new BlackBerry Curve costs more than 12,000 Philippine pesos. In contrast, HTC Wildfire sells for less than 11,000 Philippine pesos, while the Samsung Galaxy Ace sells for 14,000 Philippine pesos.

What RIM needs most now is an economical model, and this model emphasizes the message function, the blackberry has established more than 20% of the market share in the urban market from South Africa to Malaysia. In fact, RIM should have improved its display technology and camera, but its product pricing must be able to deal with the competition from Samsung and Chinese suppliers.

This means that the price in Brazil is less than R$300 and in the Philippines it is less than Rp 12,000. RIM must eventually launch a new, low-cost mobile phone.

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