KEY2 success: BlackBerry's alive and well

Dubai - TCL unit eyes further growth, challenge market order

To use that classic adage once again, reports of BlackBerry's death have been greatly exaggerated.
Especially if the iconic brand is still out there with devices that can match with anyone in its sphere - with a touch of nostalgia.
"Zero means we don't exist. But we've been shipping devices," Mike Al Mefleh, regional director for the Middle East at BlackBerry Mobile, told Khaleej Times in an interview in Dubai.
"We have been selling; we're not at the level where we want to be, but we are in the right direction when it comes to progress."
Al Mefleh was referring to media reports in February last year, quoting a survey from a research firm, that BlackBerry devices had virtually zero market share globally.
Shortly thereafter, in a statement to Khaleej Times, the company said that it was very "excited about the new BlackBerry-branded smartphones that our licensing partners. will soon be introducing".
In 2016, BlackBerry outsourced its handset production to China's TCL, which produced the DTEK50 and DTEK60. Later in the year, it announced that it would exit in-house manufacturing and concentrate on software.
By December, TCL - which eventually became BlackBerry Mobile's parent firm - won the rights to produce BlackBerry devices on a global scale, with the exception of certain territories: in subsequent licensing deals, BB Merah Putih was chosen to make handsets for Indonesia, while New Delhi-based Optiemus was picked for India, Bangladesh, Nepal and Sri Lanka.

At present, the number of TCL-manufactured BlackBerry devices are now at five, including last year's KEYone and Motion, plus this year's flagship, the KEY2, which was made available in the Middle East from Thursday.
Like its predecessor, the Android-powered smartphone - its sixth under the Google operating system, which includes BlackBerry's last in-house device, 2015's Priv - features the company's signature keyboard, its first dual-lens camera, plus several improvements on a number of key aspects. "Obviously, we wouldn't be launching the KEY2 if we were not performing well," Al Mefleh quipped.
He also confirmed that they will be coming out with another device this year. Asked whether if it would be an all-touch device - if the alternating pattern for its launches is any indication - he kept mum.
"I'll leave it up to you to guess."
 
Modest targets
Al Mefleh, while indeed acknowledging that BlackBerry isn't where it is compared to its glory days, is confident that they have the right mix to claw back into the discussion - and it has what it takes to cater to any segment of the market.
"The beauty about BlackBerry devices now is that they are catering to both, whether its businesses or consumers," he points out. "For businesses, it's ready out of the box to meet all security and company IT requirements that may be needed to set up certain elements, such as access policy. For consumers, it caters to all, whether it be for social media, games, entertainment and using the camera."
Al Mefleh stresses that BlackBerry still enjoys a brand preference, and the name still "resonates", because users "do know [that the] brand is solid."
Circling back to market share, he gave a modest outlook on BlackBerry's goals.
"I'm not going to sit here and tell you we have 50 per cent [market share], but we don't have zero either," he said. "But I can tell you we are working on a plan where our aim is to reach three to five per cent globally."
The brand's present performance can certainly back this goal up: for the KEYone, their initial forecast was only around 15-20 countries, but now it's present in 50. In the year-and-a-half that BlackBerry Mobile has been under TCL, Al Mefleh says they have taken great strides.
"We have been growing and on an upward slope," he says. "We have spent a good portion of our time engaging customers, sharing our plans with them, presenting our portfolio and see what they're interested in."
 
But as modest as BlackBerry's foresights are, they're looking ahead: Al Mefleh revealed that the company is already working for next year and as far as 2020, which means that they "have a portfolio in the right direction".
 
Security on guard
When the DTEK50 was launched, it was marketed as the "most secure Android smartphone". TCL and BlackBerry continued this with its subsequent devices.
Asked what was the first thing that came to their minds when privacy and security issues became common talk as of late, Al Mefleh had a direct answer.
"We're there already," he said. "We've been preaching this for 20 years. We've been, for a long time, deploying our solutions to a lot of Fortune 500 companies. Security and privacy go hand-in-hand with BlackBerry - and people already know that."
 
Emerging opportunities
In the Middle East, Al Mefleh says the UAE and Saudi Arabia are the two most important markets for the brand. And as emerging economies, there's always potential that can be tapped. "People in emerging markets are tech-savvy and always hungry to get more of technology, to have the latest and greatest; on average, they like to change devices between three to six months," he says.
He adds that compared to matured markets, where consumers they stay with what they have for longer, emerging markets present an opportunity to get more customers.
"When you find these many brands operating in these markets and you continue to invest and grow, it gives you an idea that there is growth in here."
"We have been making progress. I've been very busy and very pleased with the progress we're making," he says.
"So far, it's a positive trend for us: every month, every quarter, we see higher and higher demand."
- alvin@khaleejtimes.com

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