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29 March 2024

BlackBerry sales plunge as deadline nears

Blackberry device have sharply declined over the past few days as dealers and users adopt a wait-and-see attitude ahead of the nearing deadline for the suspension of the service. (REUTERS)

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By Nadim Kawach

Domestic sales of the controversial BlackBerry device have sharply declined over the past few days as dealers and users adopt a wait-and-see attitude ahead of the nearing deadline for the suspension of the service.

After a three-week recovery in the sales of the device, trading plummeted to one of its levels since the telecommunications regulatory authority (TRA) announced it would halt the messenger and other BlackBerry services on October 11 because of a rift with the Canadian makers of the phone.

Dealers said their sales of BlackBerry, manufactured by Research in Motion (RIM), have dipped by more than 90 per cent over the past three days as users prefer to wait and see whether the service would continue or halted.

“There is a wait and see state now…our sales of BlackBerry have reached a very low level these days as customers are apparently worried that the negotiations with the Canadian company might not reach any result and the service could be suspended for a long time,” said Imad Hariri, a mobile phone dealer on Defence Road, the main cellular phone market in Abu Dhabi.

“Sales came almost to a standstill just after the announcement in August that the service will be suspended…but they relatively recovered afterwards as the customers apparently became optimistic by time…they were even more optimistic following official statements about progress in the negotiations.”

TRA’s announcement in early August about the suspension of Blackberry’s messenger, web browser and e mail services inflicted heavy losses on mobile phone dealers as many of them had a large quantity in store before the decision brought trading almost to a standstill following an upsurge in sales.

Shops prospering on trading in Blackberry accessories were also key victims while those which deal mainly in second hand devices suffered most as many of them had to sell their products at much cheaper price.

Etisalat and Du sources called by Emirates 24/7 refused to comment on the deadline, adding they have received no new instructions from TRA.

Sources at TRA were equally reluctant to comment, saying there will be an announcement in the next few days.

But traders and users hope the service will continue and some of them appear to be encouraged by a recent agreement reached between Saudi Arabia and RIM to restore the service to the Gulf Kingdom after a brief suspension.

“If there was an agreement with Saudi Arabia, I don’t see why the UAE can’t finalize a similar agreement,” said Maher Gaddah, a Blackberry user.

The UAE has nearly 500,000 Blackberry subscribers, the second largest user base for such a device in the region after Saudi Arabia.

In its announcement in early August, TRA said the service would be halted on October 11 and would not be restored unless it becomes fully compliant with the UAE’s regulations, including the need to address its security concerns.

“Due to non-compliance with the regulatory requirements in the UAE, TRA announces the suspension of Blackberry messenger, Blackberry e mail, and Blackberry web browsing as of October 11,” TRA said in August.

“The suspension will remain in place until these Blackberry applications are in full compliance with UAE regulations.”

According to Moody’s Investor Service, the decision by Etisalat and Du to give customers a two-month deadline will allow them to minimise losses.

“In Moody's opinion, the period until the ban on Blackberries comes into effect will allow Etisalat and Du to lure customers into making the switch, thereby minimising the financial impact on these two operators from the potential loss of high-usage customers. Moody's understands that Blackberry services will be banned altogether within UAE borders, including international roaming.”

Mobile phone traders said the TRA decision has given rise to the sale of other key cellular brands, mainly Nokia, Sony Ericsson, Samsung and I-phone. All these brands had badly suffered since the advent of Blackberry in the UAE, one of the largest mobile phone markets in the Middle East.

“Over the past two months, Nokia sales jumped by more than 50 per cent while other brands also gained pace,” said Mohammed Homsi, a sales man at Sultan Mobiles on Defence Road, home to over 100 mobile phone shops.

“The sales of Blackberry picked up during Ramadan but not as much as they were before the TRA announcement……however, over the past two to three days, they have suddenly plummeted…this is normal as people appear to be worried as the deadline for the suspension becomes close.”