A Lesson To Be Learnt
Apparently Nokia Corporation (ADR) (NYSE:NOK) has been targeting the entry and mid-range category, which has allowed it to grow so far. But its lack of innovation and competitiveness in its Symbian and Java operating systems has led to its decline. The company sold an impressive 5.6 million Lumia devices in the recent quarter, which rose from 4.4 million in last year’s quarter.
However, the bullish picture was soon overshadowed by the 25% sales decline of its remaining range of mobile phones, primarily due to incompetent operating systems and a limited app store. But according to the latest reports, the company plans to launch the Asha 501 in India, which would be later followed by its global launch. Management recently stated that India would play a vital role in Nokia Corporation (ADR) (NYSE:NOK)’s turnaround story.
It’s not hard to conclude that Apple and Nokia are realizing the importance of the Indian market, and are changing their marketing strategies to ensure growth there.
What Research In Motion Ltd (NASDAQ:BBRY) Blackberry Needs to Do
Going by Apple’s decision to target mid-range smartphone market, I think it’s high time that Research In Motion Ltd (NASDAQ:BBRY) Blackberry follows suit. Currently its mid-range devices in India include the Curve series (OS 6 and OS 7), which haven’t been updated in a couple of years. Furthermore, Blackberry’s OS 5 devices are still hitting the shelf, and they haven’t been updated for around 3-4 years. The company needs to reinvent its mid-range segment to avoid Nokia’s plight.
Additionally, the Research In Motion Ltd (NASDAQ:BBRY) Blackberry Z10 is priced at around $830, while its Q10 is expected to cost around $600. It’s important to understand that Indian market belongs to the mid-range smartphones, and its OS 10 devices won’t be able to generate significant revenues with the current price tags.
Since Research In Motion Ltd (NASDAQ:BBRY) Blackberry’s OS 10 devices have been well received by the market, I believe that it should strive to make cheaper OS 10 devices with competitive hardware specifications. The company has a clear path for blockbuster growth; its management just needs to understand the market dynamics of developing countries.
The article What Blackberry Needs To Do originally appeared on Fool.com and is written by Piyush Arora.
Piyush is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.
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