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RIM sees a glimmer of hope

By Wang Xing (China Daily)
Updated: 2008-11-18 11:20

Canadian smartphone maker Research In Motion (RIM) expects to grow over 100 percent annually in China in the next few years, although the economic crisis may slow growth in the world's largest cellphone market.

Jim Balsillie, co-CEO of RIM, which makes BlackBerry phones, told China Daily that wireless data services for small business productivity and personal lifestyle still offer immense opportunities for growth in China.

Balsillie said that RIM needs to tap small and medium-sized enterprises, small office/home office and individual customers for growth in China over the next few years.

Global handset sales grew only 5.4 percent in the third quarter of this year from a year earlier, a six-year low, largely due to a slowdown in mobile phone sales in emerging markets, according to research firm Strategy Analytics.

In China, the growth rate may have declined from 30 percent last year to 15 percent this year, according to Pang Jun, analyst from GFK China. The growth figures for 2009 could be even lower, the research firm said.

But Balsillie said although the overall cellphone market has flattened, sales of smartphones, or handsets with computer-like features such as access to e-mail and corporate data, will continue to record high growth. "It may grow at a lower rate, but it still grows quite a bit," he said.

"And I would be shocked if China's mobile phone business does not show double-digit growth in 2009," he added.

Analysts are worried that the cost-cutting measures being implemented by many firms globally in the wake of the economic slowdown, may dissuade corporate customers from upgrading their BlackBerry models.

RIM, however, is not facing the same challenge in China as it is still signing up new customers after it started services in the country in May 2006.

The company had for long faced hurdles in its China plans due to regulatory issues. In 2006 it entered the local market by partnering with China Mobile.

RIM made a breakthrough in March this year when its BlackBerry 8700 services were launched for corporate customers in China.

Balsillie said RIM will now expand its customer base from the traditional enterprise customers. "I think we are ready for the next step and you will see some new initiatives from us in the next couple of months," he said.