BlackBerry Ltd (NASDAQ:BBRY) (TSE:BB) is losing ground in Indonesia, one of the most important markets for the company. Indonesia the fourth largest populated country in the world has been a priceless market for BlackBerry. With population of 250 million, the emerging market makes one of the most important parts of BlackBerry’s success story.

Also, BlackBerry Ltd (NASDAQ:BBRY) (TSE:BB) hugely relies on this market to counter the headwinds rising from slipping worldwide shares, especially in the developed markets. According to a report from the Globe and Mail, the Canadian smartphone maker is losing the grip on this country because of wrong strategic steps, stiff competition and friction with the company’s head office in Waterloo

Blackberry’s declining brand value

According to Steven Chandra, the store owner on an upper floor of central Jakarta’s Ambassador Mall, three-years ago the only phone in demand was BlackBerry Ltd (NASDAQ:BBRY) (TSE:BB), and nine out of 10 phones sold were BlackBerry. However, now the scenario has changed entirely as no one is interested in buying BlackBerry phones and instead opt for other brands such as Lenovo, Samsung and HTC, which were considered unfashionable sometimes ago. Chandra said that now he hardly sells any Blackberry phones.

In 2011, the market share of the Canadian smartphone totaled 43% of the new smartphones shipped to Indonesia, according to global research firm IDC. The story has changed completely now, and in the first half of 2014; BlackBerry Ltd (NASDAQ:BBRY) (TSE:BB) is left with meager 3% of the market. Market share of the company lags far behind the global leader Samsung and more obscure ones such as Advan, Evercoss and Smartfen. BlackBerry smartphones can be seen in the hands of politicians and businessman, but it has become a rare sight.

Strategic missteps hurting BlackBerry

“BlackBerry became more and more boring, we didn’t see any innovation,” says Gupta Sitoru, who at a robotics company in Jakarta, and recently shifted to iPhone.

Andy Cobham, former country head of BlackBerry Ltd (NASDAQ:BBRY) (TSE:BB) said that the company was brimming with fantastic technology and expanded its business to new heights before it fell apart. He pointed that one of the missteps taken by the company was that it accessed all its operations through Waterloo. Cobham added that BlackBerry was a world class product, and “Waterloo just mismanaged it.”

8 COMMENTS

  1. Aman Jain, I don’t understand why you always write articles without proof. I know you short this stock and write these articles to benefit your positions. I have caught and notified you about your foolish articles but you are still keep on doing the same thing. Please don’t write something that doesn’t make any sense.

  2. Sales collapsed from 2.5m a year to 500k. Only someone hit with a Brickberry would argue that is good news.

  3. They presented 1 year old evidence. 6-12 months ago this would have been accurate article.

    The data coming out of Indonesia is beyond outstanding for the past 3 months, for professional journalist to paint it the complete opposite to reality is either profound incompetence or deliberately misleading.

    I’m leaning towards the deliberately misleading, many journalists and analysts are reporting completely absurd reports on Blackberry for 2 years now. We can all speculate as to why…ie. iSheep journalist, Wall st manipulation, Canadians love to bash Canadian companies, or a combination of all 3.

    The huge success of Blackberry in one of the most populated countries in the world bodes very well for their future.

  4. In the past 3 months Blackberry increased its market share in indonesia by nearly 200% (StatCounter Global MOS Chart – Indonesia BBRY OS UP 6.91% from Sept 2014 3.85% to Nov 2014 10.76%)

    2 weeks ago it was announced BBM is destroying WhatsApp and LINE, with a whooping 79% of smartphone users choosing BBM and using it 2-4x more even.

    This article isn’t laughable, pathetic or sad, its deliberately misleading. I guess the Shorts are trying to recoup their losses yet again….better hurry up, BES12 released next week and the Classic next month….and with all the good news coming out of Indonesia the next quarterly results will make being a Short disastrous.

    Thanks for bringing up Blackberry and Indonesia.

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