BlackBerry, whose handsets were once synonymous with company executives and the business class, will restrict its yearly rollouts to select models catering to a niche segment as it focuses on its enterprise business for higher profits.
Though the devices will always be the company’s key rollouts, they will cater to a niche segment, BlackBerry India managing director Sunil Lalvani said on Friday.
Lalvani added that unlike some of its competitors, BlackBerry will not manufacture sub-$200 phones — they will hit the margins drastically.
“The focus going ahead is the enterprise business, which today contributes a significant portion to the company’s revenues,” Lalvani said.
Despite being the market leader in the smart phone segment for years, BlackBerry has lost its edge to competitors like Samsung and Apple, whose mobile phones dominate the market today.
According to research firm IDC, BlackBerry’s market share has declined from 8.1% in October-December 2011 to 0.4% in the last quarter of 2014.
BlackBerry officials say that while hardware sales comprised 42% of the company’s sales during Q4 of FY14, sales from services and software constituted 47% and 10%, respectively.
“Going ahead the focus will be on increasing the bottom line and not the top line. So, in aligning ourselves to this view, we will not sell a huge number of handsets and hardware to boost our revenue figures but concentrate our effort on our high-margin enterprise and software services, which will drive profits,” Lalvani added.
BlackBerry on Friday launched its 5-inch handset Leap that comes with an HD screen and generous battery life. It recently acquired data security firm WatchDox and plans to roll out its features for Indian clients before the end of the current fiscal.
The company is also in discussions with regulatory authorities and telecom operators to launch its virtual SIM solution by the year-end. Consumers, using the solution, can access as many as nine mobile numbers through a single Sim card.
The company, which is seeking clearances from the regulatory authorities to launch its virtual Sim cards, hopes to launch the solution by the year end.