BlackBerry has seen decline in India smartphone sales as it lost out market share to rivals selling phones based on Google Android OS.
Canadian smartphone maker BlackBerry’s Indian arm, BlackBerry India saw its net profit decline sharply in fiscal 2014, by around 50% year-on-year to Rs 11.46 crore. According to the standalone balance sheet for fiscal 2014 filed with the Registrar of Companies by BlackBerry India, the company’s revenues nearly halved to R142.05 crore in FY14.
Analysts state that the earnings reported by BlackBerry in India aren’t surprising as the company has seen its smartphone sales in the rapidly growing Indian market decline, as it lost out market share to rivals selling phones based on Google’s Android operating system.
“BlackBerry’s revenue constitutes services, software and devices. Over the past one year, our focus has been on driving profitable growth thru an optimal mix of all the above. I am happy to state that this strategy is paying off for us in India with over 1000 enterprises adopting BlackBerry
Enterprise Service 10 during this period,” a BlackBerry India spokesperson said in an email.
While the Canadian parent company has been running in losses, India is one of Blackberry’s profitable markets and, in fact, the company saw its net profit and turnover from India improve year-on-year between FY11 and FY13.
The decline in BlackBerry’s turnover in India mirrors the trend in the reported earnings of the parent company in 2014. BlackBerry reported a 38.5% y-o-y drop in its revenues at $6.81 billion, while its net losses widened to $5.87 billion from $646 million in fiscal 2013.
According to Anshul Gupta, principal analyst at Gartner, the total shipment of BlackBerry handsets to India in FY14 stood at a third of what the company shipped in the previous fiscal.
BlackBerry, which is repositioning itself as a provider of enterprise solutions, is banking on the widespread adoption of the BYOD (bring your own device) concept in India to drive revenues. BlackBerry’s earlier generation of enterprise solutions was restricted to its own operating system and smartphones. But the new generation of solutions is being customised for platforms like Android, iOS and Windows, and will be rolled out in India soon. The company expects these initiatives to boost earnings in the coming quarters.
“BlackBerry is still relatively new in the enterprise market in India. While their device sales are not doing so well, and their financial numbers are not exciting, they are bringing their latest services from global launches to the Indian market which is a exciting prospect for the company going forward,” Gupta said.