4 reasons BlackBerry phones will die in Indonesia (but BBM will still reign supreme)
BlackBerry recently released their instant messaging software, BlackBerry Messenger (BBM), on the Android and iOS platforms. This was big news for many Indonesians, as BlackBerry usage is quite prevalent locally. Now, those without a BlackBerry phone can communicate with friends and family through the BlackBerry messaging network. However, things may be different for BlackBerry hardware.
BBM will still dominate
Despite being years late and lacking some features, we still believe BlackBerry will maintain its position as king of instant messaging in Indonesia. There are three simple reasons for this.
Firstly, in terms of current market share, BlackBerry's instant messaging service is still number one. It gains new users through network synergy effects. Secondly, many Indonesian stores use BlackBerry to attract paying customers; an account might have tens of thousands of BlackBerry contacts, making it difficult for them to switch away from this service. Thirdly, local mobile manufacturers will pre-install BlackBerry messaging on their new Android phones, which will also boost the usage rate of BlackBerry messaging. Cyrus, an Indonesian mobile company, provides a good example with its latest model, the Chat phone. This Android device features a QWERTY physical keyboard and comes pre-installed with BBM, aiming to replicate the chat experience found on BlackBerry phones.
In conclusion, I remain confident about the future of BlackBerry's messaging service.
Even without key features, BBM will still be widely used
Surely, the version of BBM on Android and Apple platforms lacks many interesting new features like stickers, social games, free calls, and video calls that other rapidly growing messaging apps such as WhatsApp, Line, and KakaoTalk already offer. However, it is typical for Indonesians to use multiple messaging apps simultaneously. Even if BBM cannot be the first choice, it can still hold an important position among the many messaging apps used in Indonesia.
The main issue for BlackBerry is service reliability. At the time of writing, there were some errors and temporary interruptions in the messaging network because the servers could not handle the surge in users that day.
Gloomy prospects for BlackBerry phones
Regardless of what happens in the long term for BlackBerry, its uncertain future is evident. Even though its messaging app is on the verge of a revival in Indonesia, its phones will still face a painful struggle. Here are four reasons why:
1. There are no exclusive features on BlackBerry phones
A few years ago, three things made BlackBerry popular: the phone's email push function, its physical full keyboard, and its messaging app. None of these features are unique to BlackBerry anymore. More and more phones come pre-installed with BlackBerry messaging, and both the email push and full keyboard functions are available on other devices. This encourages many current BlackBerry users to switch to other systems.
2. Poor phone experience
Nowadays, in Indonesia, BlackBerry is no longer as trendy as it was a few years ago. Many people buy BlackBerrys because they are cheap—just $184, even the latest old BlackBerry model, the 9720, sells for only $257.
BlackBerry no longer carries the aura of luxury. It has almost nothing left to offer.
More importantly, BlackBerry disappoints many users, forcing some Indonesian users to carry two phones—one being an old BlackBerry and the second usually an Android device. Since the BlackBerry messaging app is now available on other platforms, there is even less reason to use an outdated BlackBerry phone.
3. Poor resale value
When BlackBerry's flagship model, the Z10, was first launched in Indonesia, it sold for $609. Just six months later, it dropped to $415.
This was a huge blow to those who owned this flagship model. They can no longer sell their used devices at a reasonable price and must watch their money vanish.
Meanwhile, the prices of two other new models introduced by BlackBerry, the Q10 and Q5, have remained stable.
4. Decreased confidence in the BlackBerry operating system
BlackBerry recorded a $1 billion loss last quarter and laid off 4,500 employees after launching its latest models. Moreover, don't forget that BlackBerry is currently seeking a $4.7 billion acquisition.
BlackBerry says it will retain all its employees in Indonesia, but no one can ignore the bleak outlook: if no one develops applications for the BlackBerry system and no one buys their phones, what will happen to these employees?
Only the messaging app will continue to thrive (according to a previous survey by Games in Asia Indonesia, 86.6% of 4,718 respondents said they would download BlackBerry messaging on other platforms). The BlackBerry system may not have much time left. For developers—not just in Indonesia but globally—the safest bet is to migrate to other systems like Android or Apple.
So the situation is clear: if the system cannot make a comeback, the Canadian company might be better off focusing on BlackBerry messaging and other online services. By next year, perhaps there won't even be a few BlackBerry phones sold anymore.