CHINA TOPIX

11/02/2024 09:37:16 am

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BlackBerry Wary of Chinese Business Expansion

BlackBerry CEO John Chen

(Photo : Reuters) The still struggling smartphone manufacturer BlackBerry recently announced that it is planning to launch to Android smartphones aimed at the mid-range price bracket this year.

BlackBerry, in cooperation with Samsung and other tech companies, announced several new services this week at its Enterprise Portfolio Launch in San Francisco.

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Talking about the South-East Asian region, BlackBerry CEO John Chen believes this is an area for BlackBerry to reclaim its lost revenues, by offering the same brand to businesses.

However, one country surprisingly not on the priority list is China.  As the largest smartphone buyer in the world, China offers a lot of potential revenue for security and services - but Chen does not see the positives outweighing the negatives.

The negatives, according to Chen, include taking too long to ramp up security efforts. With various security and service companies based in China already, alongside the political backlash BlackBerry could face, if the company gets hit by hackers.

Other markets - such as "India, South-Asia and South-East Asia" are more appealing to BlackBerry - at least in the short term. BlackBerry should start to focus in on China in the next few years, in order to maintain some presence.

BlackBerry smartphones have never been popular in China, always sitting below 2 percent of the market. In India and other South Asian countries, BlackBerry has found and continues to find success.

However, over the past few months, rumors have it that Lenovo is interested in acquiring BlackBerry. Lenovo recently acquired Motorola Mobility from Google for $2.91 billion, and this new acquisition would give it a firm grasp of the Western market.

It would also give Lenovo some much needed enterprise services, if it wants to compete with Apple, Microsoft and Chinese retailers. Having the enterprise software under the name Lenovo might alleviate some political bias against BlackBerry.

BlackBerry's CEO John Chen has not spoken on the supposed buyout.

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