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Branding, marketing

BlackBerry bows out of consumer market

Blackberry says it will go back to its roots and concentrate on targeting business users after failing to compete with rivals such as Apple and Samsung.

The company says it will still have a consumer operation, although this is likely to be tailored for business people.

It is unclear at this stage whether BlackBerry’s “biggest ever marketing campaign” for the launch of its BB10 operating system will be scaled back or cancelled altogether.

Parent company RIM is now undergoing a “comprehensive” 10-week strategic review that could result in a sale, partnerships, licensing or joint ventures so the company can best utilise its assets.

The announcement comes on the back of another quarter of financial decline, which saw RIM report a net loss of $125m (£78.5m), compared to a profit of $934m (£584m) the previous year.

BlackBerry sold 11.1 million phones in the quarter to 3 March. By comparision, Apple sold more than 37 million phones in the last three months of 2011.

BlackBerry chief executive Thorsten Heins says: “We plan to refocus on the enterprise business and capitalise on our leading position in this segment.

We believe that BlackBerry cannot succeed if we tried to be everybody’s darling and all things to all people. Therefore, we plan to build on our strength.”

Heins assumed the role of chief executive after RIM’s co-CEOs Mike Lazaridis and Jim Balsillie stepped down in January.

Balsillie has now resigned from the board and David Yach, chief technology officer for software, and Jim Rowan, chief operating officer for global operations, are also departing.

Elsewhere in the mobile sector, HTC is due to launch its “biggest ever” marketing campaign next week to promote its line of “One” smartphones that it hopes will turn around the disappointing sales it experienced in the last quarter.

Readers’ comments (1)

Anonymous | Fri, 30 Mar 2012 11:05 am

Is the day close to when we will say “I used to have one of those BlackBerry’s”, I doubt it!

This announcement was expected for BlackBerry to refocus on their legacy & heritage customers.

The knock on effect of last years misfortune with delayed release dates and a product (QNX) that wasn’t ready to go out the door, twinned with a range of smartphones that lacked innovation has led to partners not stocking their devices for the quarters that followed (this has caused the pinch) and drop in sales. Plus lets’ be clear exactly where most of these profit drops are being felt (North America). Europe and other emerging markets are thriving for the brand and with a exciting OS planned for release soon its about survival during the next few months, retaining the market share the brand already has.

This is put simply a story to appease shareholders right now, with consumer sales playing to bigger role in the companies success to walk away from it.

via BlackBerry bows out of consumer market | News | Marketing Week.


About Bob Innes

Who am I and what I do best! I am a skilled Sales and Marketing team player known for performing behind the scenes miracles that increase base distribution, improve customer relationship management, exceed annual sales volume,and profitability for Consumer Packaged Goods companies. And I've been doing it for over 15 years. My successful contributions include such clients as Kraft Foods, Mars, Bumble Bee Foods, Unilever, Johnson and Johnson and SC Johnson, and JM Smuckers.


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