Won't monetise BBM platform as it's a great asset: BlackBerry - Economic Times ~ Electronic Gadgets

Tuesday, 25 February 2014

Won't monetise BBM platform as it's a great asset: BlackBerry - Economic Times

11:51

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BARCELONA: Canadian smartphone maker BlackBerry will not monetise its popular messaging platform BBM as it considers it a great asset for the company, chief executive John Chen said Tuesday while launching two handsets — Z3 and Q20 — at the Mobile World Congress in Barcelona, Spain.

"I have to thank Facebook for the interest around messaging systems. BBM has a great follower base — around 85 million active users a month — which is expanding. This is before the contributions come in from the Windows phone and the LG phone. We though are still far away from the 465 million (from Whatsapp). We think it has a lot of value, is a huge asset for us that we treasure," he said. Messaging apps have become new acquisition targets as more people use them instead of text messages, cannibalising mobile phone companies' messaging revenue.

Social media giant Facebook acquired messaging app WhatsApp in a $19-billion deal while Japan's Rakuten acquired calling and messaging app Viber for $900 million last week. BlackBerry launched BBM for Windows smartphones and Nokia's new Android devices on Monday, which will help increase the number of users globally.

BBM is available for iOS and Android users. Chen ruled out introducing sub-$75 devices, saying the company's focus was on enterprise and security, therefore, it will play in the higher end of the market. "That's not our sweet spot," he said.

The Ontario-based company will continue to produce phones in the premium segment but will make adjustments to its pricing strategy for markets like India. BlackBerry cut the price of the Z10 smartphone down to Rs 17,990 in India on Tuesday, the second time since its launch in February last year in India at Rs 43,490.

The Z10 will be available for sale at the discounted price for two months. "We have made some changes to our pricing strategy for India. The under $200 phone that will be launched in Indonesia first (Z3) will be attractive and competitive for the Indian market," Chen said.

Created in collaboration with Foxconn, the Z3 will be launched first in Indonesia at a retail price of under $200, and will then be expanded to cover parts of South East Asia.

BlackBerry also launched the Q20, a follow up to the Q10, which was not widely accepted among users. Q20 goes back to the Black-Berry Classic and will feature a keypad and a track pad. The price has not been made public and it is expected to be launched in India later this year.

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