Canadian handset manufacturer
) plans to launch budget friendly full-touch Z3 smartphone in
April, this year. The BB10-based smartphone is the first outcome
of the BlackBerry and Foxconn partnership. The 3G device will
initially be introduced in Indonesia and will later be launched
in other countries, integrated with 4GLTE technology.
In Dec 2013, BlackBerry entered into a 5-year agreement with the
world's leading developer of electronic products and components,
Foxconn. This strategic collaboration has helped BlackBerry
target the smartphone markets of emerging nations like Indonesia.
Foxconn will supply inventories for the smartphones.
The 5-inch smartphone features the popular BlackBerry Hub for BBM
messages and emails, HTML5 browser and an inbuilt radio FM. The
handset will be priced below $200, keeping in mind the
price-sensitive customers in Indonesia and other emerging
In 2011, BlackBerry had a 43% market share in Indonesia. However,
stiff competition from
) and other low-cost
) smartphones have significantly slashed BlackBerry's market
share. Consequently, at the end of 2013, BlackBerry held a mere
14% market share.
In the third quarter of fiscal 2014, BlackBerry sold 4.3 million
smartphones. At present, the company is writing down its unsold
inventories and has incurred an operating loss of nearly $5
Hence, to gain competitive advantage in terms of producing
affordable handsets, BlackBerry has teamed up with Foxconn.
BlackBerry currently has a Zacks Rank #3 (Hold).
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