Research in Motion (RIM) the manufacturer of Blackberry smartphones have massively reduced prices of it’s major models in India.
In an effort to fuel sales & increase adoption of Blackberries, the prices were slashed by a whopping 26%.
The biggest reduction has happened to the Torch 9860 model from Rs. 29,990 (@ US$ 600) to Rs. 21,990 (@ US$ 440). The second in line is the Curve 9380 which earlier was priced at Rs. 20,990 (US$ 420) will now cost Rs. 16,990 (US$ 340).
RIM had earlier slashed prices of its 7” tablet PlayBook by half in a bid to increase sales. While sales were positively affected, the company’s image did take a hit. While RIM’s products are heavily fortified with security features, many companies have begun to offer similar featured smartphones. Under these circumstance, RIM would do well, to bring out newer devices that are supported with a very healthy app ecosystem & it could regain the lost market share.
According to RIM India MD Sunil Dutt, the models Torch (9860) & Curve (8520, 9360, 9380) compromise over 60% of sales in India. RIM wants more youngsters as to own Blackberry and not just businessmen. For a company with a heavy focus on just the enterprise market, to such a make a statement means profound implications to the mass-market where the likes of Samsung & Nokia are heavy-hitters.
Interestingly, the company has revealed that they have begun to give equal weightage to both the Consumer segment as well as Enterprise segment & hence the price cut to lure consumers. While Nokia used to be a leader in the consumer market, Samsung has recently taken the lead.
Let’s see how this price reduction affects the market dynamics. Would you buy a Blackberry now that its cheaper?