Blackberry Bold: The Next 'Gotta have it' in Japan?

The rise of the ‘smartphone’ is upon us. What I am referring to of course are the computer like mobile devices which are equipped with so many functions that essentially mirror that of one’s personal computer. We have already covered Apple’s iPhone in a few articles already and today I would like to take a look at RIM (Research in Motion) the Canadian based company which has been tearing up the North American markets for the past few years through the sale of its ever popular Blackberry line.

RIM entered into a partnership with NTT Docomo to distribute the Blackberry back in 2006 to mainly corporate users and has it is still going. Many questioned the move at the time as one of the main features of the Blackberry was its ‘always on feel’ which was created through its ability to connect seamlessly to office email networks and in effect sync that data with the Blackberry. To be honest though, this feeling of ‘always on’ has been a staple here within Japan for quite sometime. Maybe not in the same capacity as what the affectionately coined ‘Crackberry’ has been doing, but in essence the notion of being able to connect with whoever you need to, whenever you want was not a new novelty. In addition, at the time the move was also maligned for the fact that that the device didn’t even have Japanese input language capabilities.

Well, fast forward back to 2008 and you’ll find that RIM has been putting to rest a number of naysayer concerns and pessimistic outlooks for the Blackberry in Japan. It looks as though the brain trust at RIM were simply biding their time and craftily entering a foreign market one step at a time in order to get a better feel. Something a lot of other companies ought to do before diving head first into unknown waters. The initial market entry appeared to be mainly cautionary in nature with the testers being directed at mainly foreign corporate business world. Now, however the devices are being used in over 1200 foreign based companies and the Blackberry is starting to gain some traction. The toughest test is yet to come however and some see it not so far away.

With the confirmation that their newest device Blackberry Bold will be sold in Japan in 2009 and reading excerpts of comments made by officials at Docomo, it looks like the Blackberry is gearing up for battle on a new ground within Japan. This device was quoted as being “the most powerful smartphone responding to the needs of both business users and personal users," said Kazuhiko Kushima, managing director of NTT DoCoMo Solution Business. Additionally, DoComo has already begun to stimulate the demand of personal users by starting the "BlackBerry Internet Service," which allows users who don't have a dedicated server to access the Internet through the BlackBerry. It has also been stated that they would like to shift the ratio of users from corporate to individual down to 7:3 or 6:4. All signs point towards increasing the marketing efforts towards individual users.

Bold words and actions, but obviously Docomo sees a lot of potential in not only this device but the management at RIM to guide this venture to new reaches of profitability in this ever challenging and fickle Japanese market. It will be interesting to see how well this Canadian based company fares. However, judging from its initial positioning strategies and coupling those with the emergence of the smartphone market here in Japan the Blackberry could become the next must have.

As a side note, it is refreshing to see a successful Canadian based company challenging markets outside the confines of North America and doing so in a calculated and cool way. I will not hide my enthusiasm over that fact and look forward to reading more positive news from the mobile makers of the great north.

Canadian Chris

Gloom confirmed

Global markets are reeling and it was only a matter of time before the effects spread into the world of wireless. Well, unfortunately such gloom has arrived. Samsung and Nokia have officially given notice that growth within their respective companies will be stunted for the remainder of this year and possibly into next.

"The actual global market growth on a unit basis could come short of our initial forecast for 9 percent growth (in 2008)," James Chung, a spokesman for Samsung, told Reuters.
"As for next year, it is possible that the market could post a single-digit or even negative growth," Chung added.

Such sentiment was already shared by top handset maker Nokia with their top boss stating, "that the world's mobile phone market would fall in the fourth quarter and next year as an economic slowdown crimps consumer demand."

With new models being looked at as luxury items one can easily see why these top handset makers are not so bullish about their prospects. In fact here in Japan, where electronic gadgets are always in fashion there has been a shift in consumer buying patterns as reported by Japan's broadcast corporation NHK. The new trend apparently has been the selling of older mobiles at drastically reduced prices. Models that four months earlier retailed at nearly $500 US are being sold for $150 or less. Manufacturers seem to be understanding that consumers simply cannot spring for the newest or latest models.

Interesting times right now and it will be even more compelling to see how these companies respond. As alluded to in the previous post, that despite downturns there are always opportunities
for those ready to look for them.

Canadian Chris

The sky is falling....and people are losing money!

......As people maybe thinking that the sky is falling...well not really... but as the economic crisis hurts people on paper...I am sure they are thinking the sky is falling......

So, apart from the devastating and somewhat sickening roller-coaster affect on the Nikkei and markets around the world being brainwashed to us on TV, the effects on the global mobile phone market is definitely a market that the TV media seems to be over-looking.

The global mobile phone market has been forecasted to grow at much slower-than-expected rates next year as consumers put off buying new devices due to deepening economic concerns. While mobile phone industry executives often say mobile phones are the last thing consumers will give up, in order to save money, analysts are now forecasting longer phone replacement cycles and weaker sales estimates as a result of weakening economies around the world. Consumer reluctance to upgrade phones coupled with modest growth in China, the downturn to take toll on mobile phone growth is forecasted to reduce global handset growth to around 3 percent from 6 percent, with particular weakness in Europe and North America.

The not so rosey news comes as major phone vendors are betting on the success of higher-end, Internet-enabled smartphones, following the popular Apple iPhone. HP, for example, is expected to be driving into the consumer smartphone market with a new iPAQ model later this year.

Well, with the global credit crunch and possibilities of a global recession ahead of us, all I can say really is.........

....as sand falls through the hour glass these are the days of our times....

Australian Chris