RIM To Push Growth Through CDMA Phones; GSM Saturated?

Research in Motion (RIM), the manufacturer of Blackberry is now looking at Code Division Multiple Access (CDMA) technology to boost sales. To enhance its sagging sales volumes, RIM is now re-launching its CDMA flagship model the Curve 8530 with a 12% drop in its price. The Curve is now available at Rs. 11,990 (US$ 240). Curve 8530 is the CDMA brethren of popular GSM model Curve 8520.

Quite recently, in as bid to push sales, RIM slashed prices of its popular models by about 26%. Even before that RIM had halved the price of Playbook tablet in a bid to stay ahead in the tablet race. Though such tactics appear to work wonders for the sales figures, we wonder, how much good or bad effect they yield in the long-run. Despite being heavily priced Apple’s iPhone has been selling like hotcakes.

It is a known fact that GSM technology is quite popular in India. It’s subscriber base is literally exploding. However, CDMA is hugely popular abroad. Telecom bigwigs like Sprint & Verizon offer CDMA technologies. The biggest ace of CDMA is the ability to stream data & telephony simultaneously. But owing to curtailed choice of smart-phones in CDMA, Indians usually prefer GSM. RIM’s current portfolio of CDMA devices includes BlackBerry Style 9670 (Rs 19,704), BlackBerry Curve 9330 (Rs 15,990), BlackBerry Bold 9650 (Rs 20,990) and BlackBerry Curve 9350 (Rs 20,990). Despite global slump, RIM has been quite aggressively pushing phones in the Indian market.

While RIM has played the ‘price high first & reduce later’ game, manufacturers like Samsung, have come up with phones that fit every market. It is these methods that helped it get ahead of market leader Nokia.

Let’s see if this works in the favor of the ailing company.

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