In Africa value for money reigns supreme. It stands out like a giraffe in the Serengeti. It doesn’t hurt to create a different package for a different continent. Large East Asian companies, e.g. Toyota, Nissan and even Tata, are already doing it. Nowadays a ‘built for Africa’ sale tag on technology flies off the shelves.
Nokia is doing it already and even has handsets that are fully operable in local languages, e.g. Swahili, the most widely spoken language in Africa. And even though Nokia’s market share is largely due to feature phones, Research In Motion Ltd (NASDAQ:BBRY) can imitate the Finnish company.
BlackBerry only cared to use ‘bold’ in naming of a phone series; it’s time BlackBerry got bold in action. Research In Motion Ltd (NASDAQ:BBRY) should create tailor made mid-range handsets to attract the bulging middle class. With its formerly elite E series and current Lumia series, Nokia Corporation (ADR) (NYSE:NOK) is sufficient proof that a well-designed product packed with appropriate features will, even at a high price, still attract the African middle class. Yet BlackBerry holds an upper hand in that it’s naturally considered a classier brand. Appealing to the middle class will be easier, much like Sony Corporation (ADR) (NYSE:SNE) in the nineties. The untapped market is theirs to grab, yet even the presumably tapped are susceptible. The Nokia clientele isn’t a spectacularly loyal lot and BlackBerry is exploring this.
If the leaked info about the new R-series mobile handsets is credible, Research In Motion Ltd (NASDAQ:BBRY) is already on the right path; lowering the specifications on handsets while maintaining their smart phone tag is one sure way to lure the lower middle-class demography. And as the company was able to increase its margin to 40%, BlackBerry’s shares are a strong buy.
Against Nokia, BlackBerry holds an upper hand in capturing the smart-phone market in Africa and this is bound to boost revenue. Over the last six months, BlackBerry’s stock has risen over 70% and any one saying it’s about to reach its peak needs to focus on the long term. Q10 sales are off the charts and the introduction of the R-series next week means BlackBerry is the stock you must buy.
The article Dynamics of the African Market: Why You Should Buy BlackBerry originally appeared on Fool.com is written by Frank Midega.
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