RIM to add 4000 retail stores in Asia as demand rises
RIM to Add Thailand, Indonesia Stores as Asia Demand Rises
Research In Motion Ltd. (RIM) plans a campaign to increase retail outlets in Indonesia and Thailand, seeking to capitalize on rising demand for its BlackBerry smartphones in Southeast Asia and offset slumping U.S. sales.
RIM plans to have about 4,000 outlets including flagship stores, store-in-stores and kiosks across Indonesia within the next year, broadening its current footprint of four shops in Jakarta, Gregory Wade, RIM’s Asia head, said in an interview today at the Mobile World Congress in Barcelona, Spain. He said RIM also has “aggressive” plans to open outlets in Thailand and Malaysia.
Indonesia “is the proving ground” for an expansion across Southeast Asia, said Wade, who is based in Singapore.
The company, having been overtaken by Apple Inc. (AAPL)’s iPhone and devices using Google Inc. (GOOG)’s Android software in the U.S., is seeking to avoid the BlackBerry’s slump from spreading outside North America. RIM’s sales outside the U.K., U.S. and Canada jumped 31 percent last quarter to $3.17 billion as U.S. sales dropped 45 percent to $1.03 billion.
RIM, based in Waterloo, Ontario, fell 2.3 percent to $14.17 at the close in New York. Shares of the company, which named Thorsten Heins chief executive officer last month with the resignation of co-founders and co-CEOs Jim Balsillie and Mike Lazaridis, have lost 90 percent since their 2008 high.
RIM to Add Thailand, Indonesia Stores as Asia Demand Rises - Bloomberg
- 02-29-12, 05:01 PM #2
they must stay #1 outside the U.S and building more
stores will surely help.
Just like having Apple stores in the U.S helps Apples sales a lot.Watch Hulu and Netflix on the Playbook
- 02-29-12, 05:35 PM #4
That's great news! But I would love to see these stores in the U.S. as well! Could you imagine lining up in front of a BlackBerry store the morning of the first day BB10 phones go on sale?
I think it would help RIM's sales as well as people would be totally surrounded by BlackBerry phones and PlayBooks so people would be more likely to chose a BlackBerry device rather than potentially being aroused by an iPhone or Android device next to it. Also, with the carriers reluctant to push BlackBerrys (with some reps openly bashing it in front of customers), people would see the full capabilities of BlackBerry in a positive light. Plus, the customers would feel closer to RIM and could get dedicated support for their device rather than from potentially uninformed carrier technicians.
- 02-29-12, 05:46 PM #8
If you try and find the Wireless Giant Blackberry stores, it ain't easy. See, BlackBerry Store that lists a grand total of 8 stores in the US. I know RIM is miffed that they're not doing so well here in the States, but we could use a little help. If RIM would expend itself to populate the big markets with retail outlets and then make it known that they were the spots where you could cue up to get the latest device, it might even create some buzz. It sometimes seems as if RIM is allergic to buzz, but couldn't they just deploy their noise-canceling technology to block it out? Buzz-killing technology!Lumia 1520, Passport -- Surface Pro 3
- 02-29-12, 06:30 PM #14
The problem, though, is that building many retail stores is very, very expensive. Apple's 2012 budget for new stores and expansions is $900 million. So they must have spend a few billion easily over the 11 years that they have been ramping that operation up.
RIM has traditionally run without debt. I can't see how they can really build out an international network of stores like Apple's without taking on a few billion in debt. I know Apple didn't take on any debt either, but they also had 10 years to build out their stores and obviously $900 million for their new stores in 2012 is just a fraction of their profits for the year, and a tiny fraction of their cash in the bank right now. RIM, on the other hand, is starting much farther behind in terms of number and placement of stores, and has only just over a billion in the bank, and probably only just over a billion in new profits for 2012 (FY2013) to work with.
So it's easier said than done without debt. I think what they can do, though, is pick their spots to maximize their smaller budget. Indonesia seems to make a lot of sense to me. India would also make a lot of sense, if they can circumvent the powerful distributors there. (If you remember, Apple struggled with that issue also in Japan, and still hasn't cracked it in India).
Last edited by app_Developer; 02-29-12 at 06:33 PM.
- CrackBerry Abuser
02-29-12, 06:46 PM #16
- 255 Posts
The term "third world" came from the Cold War era, where roughly speaking there were two sides to the conflict: a group of capitalistic countries led by the US, and a group of countries led by the then USSR whose ideals were grounded in communism. The "Third World" referred to unaligned countries such as those in Africa and certain areas of South America.
Most of the countries in Asia were aligned one way or the other, with China and North Korea firmly in the communist camp, and Japan and South Korea representing the free markets.
Last edited by VeGiTo; 02-29-12 at 06:51 PM.
02-29-12, 07:04 PM #17
- 2,573 Posts
The other thing to remember is that most branded-stores fail for tech companies. Gateway, Sony, Pioneer and Nokia have all tried branded-stores, and all ave failed. Microsoft seems to be doing okay, but they sell all sorts of products there, not just their own.
- CrackBerry Abuser
02-29-12, 07:18 PM #19
- 429 Posts
"....Sure there are poor countries in asia too but that is not where these stores are going. .."
After seeing the 'list', I was wondering geeez what other countries are there in asia ! But duhh then I recalled a recent story involving Nepal and it being called a 'poor' country .... so no RIM store(s) ! Nepal where the gov't (the people) can not afford studies to prevent the future catastrophic flooding by the ever-growing glacial lakes ! According to the story there is one main guy who has taken it upon himself to 'study' the impending failure hmmmm if there is a 'network' maybe RIM could donate their latest tech to the guy so can he let the world know when this catastrophy occurs from a country that is "poor" and therefore no RIM store !!
Last edited by Cracklen; 02-29-12 at 07:30 PM.
- 02-29-12, 07:23 PM #21
But Economist101 brings up a good point that most of these stores don't work as well as Apple's has. I think Apple did well to hire key people from companies like Target. I don't think RIM has done anything like that yet.
Apple also invests in great looking stores in very prime locations, like the top of Fifth Avenue, Regent Street, l'Opera, Comm Ave in Boston, the stores in Shanghai and Hong Kong.
And Apple sells extremely high margin products, which RIM doesn't do right now either.
So again, easier said that done, certainly.
- 02-29-12, 09:17 PM #25
Ya know, we never see anyone talking about the Second World. It's always First World problems in the US, the world leaders. And Third World concerns for pretty much the rest of the world.
What about the forgotten Second World? Talk about an inferiority complex...