BlackBerry sales in India has slumped by almost 15-20% since July, according to industry experts and retailers. Though the company has stepped up its promotional activities, the stalemate on the security concerns regarding decoding the encrypted enterprise email service from BlackBerry continue to play the spoilsport.

According to IDC, Blackberry shipped around 1.7 lakh units in calendar year 2009 and was projected to do about 3.5 lakh units this year. BlackbBerry?s Indian spokesperson said the company will not be able to comment on confidential regulatory matters.

?Potential BlackBerry customers are in two minds and are looking out for other options. BlackBerry rules the enterprise services handsets segment. In the initial days, the drop in sales could be around 15-20%. However, going ahead, if their enterprise email services are being stalled, the company will see a huge drop in its sales,? said Nandita Krishna, programme manager, ICT Practice, Frost & Sullivan, South Asia and Middle East.

?Impact on revenues will also be a concern for the company. On an average, sales from handsets typically comprise 70-80% of the total revenue and software and services contribute 20-25%. Once email services are stopped, the immediate impact would be on this 20% revenue,? added Krishna.

Research In Motion is the company behind the BlackBerry brand with a worldwide market share of 18.2% in the June 2010 quarter. Nine operators, including Bharti Airtel, Vodafone Essar and BSNL, offer BlackBerry services with about a million subscribers.

Individual retail chains FE spoke to have observed a 50-80% decline in Blackberry query for purchase. ?Uncertainty regarding BlackBerry is directing consumers to other options. We have even witnessed these potential consumers postponing their buying decisions,? said a Mumbai-based handset retailer on condition of anonymity.

?The brand has been doing well in the enterprise segment. BlackBerry sells about 15,000-20,000 handsets a month. The brands have to align themselves to the security needs,? said Pankaj Mohindroo, president, Indian Cellular Association.