Monday, October 17, 2016

BlackBerry Juices Indonesia’s Plans to Grow Its Smartphone Supply Chain



Blackberry entered into a joint venture with PT Telekomunikasi Indonesia Tbk, which is the Indonesia’s largest wireless carrier. PT Telekomunikasi will be in charge of producing, promoting and distributing Blackberry-brand devices in Indonesia. The Indonesia government is currently prompting locally manufactures sourced products. Indonesia is requiring they all mobile devices be made in Indonesia. Indonesia government implemented regulations that by 2015 mobile phone importers must create and assembly plant in Indonesia. By 2020, Indonesia is expected to be the fourth largest smartphone market. Indonesia is a crucial market for Blackberry, since the blackberry messaging service is the top messaging platform in Indonesia. There are nearly 60 million active users of the blackberry messaging service. WhatsApp and Facebook messenger service have approximately 50 million active users in Indonesia. Apple is not currently sold in Indonesia but the products can be found on the black market. Apple is planning on R&D center in Indonesia within the next year. Various other mobile phone producers including Samsung have set up local manufactures to assemble their phone to meet the requirement. Samsung holds the lead in the Smartphone market with approximately 26 % market share. The new regulations have also created new opportunities for locally developed software companies. The Indonesian government will require that the smartphone producers installed seven locally development apps or 14 game with at least a million active users.  This is interesting way to increase locally manufactured sourced products, but I can see some manufactures choosing not to sell to this market, in the market share is not available. Consumers will be limited to number or smartphone options available.

 

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