Business
Technology
Research In Motion announces Brazil as the 9th Smartphone manufacturer By Josyanne de Souza
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fter rumors started circulating last year, Jim Balsillie Research in Motion (RIM) executive, confirmed “the Canadian Smartphone handset manufacturer had signed an accord with Singapore’s Flextronics to manufacture the Curve 8520 model at its unit in Sorocaba - Brazil.”
the Brazilian cellphone market has attracted several foreign copanies like Nokia, Samsung, Motorola and LG, which have been manufacturing their equipment in the country for years.
manufacturing in Brazil is a logical extension of RIM’s expansion in the region.
The growth potential of the Brazilian telecommunication market is one of the reasons why RIM decided to manufacture the Curve 8520 model in the country. Resembling other developing countries, more people in Brazil use cellphones than traditional landlines. As of 2004, according to IBGE – the Brazilian Institute of Geography and Statistics, the percentage of homes with only The company manufacturing cellphone was already larger than the base’s are concentrated in Canada, percentage of homes with only fixed Mexico and European countries. lines. Consequently, Brazil phone The Brazilian unit will be the companies are increasingly changing ninth company’s manufacturing in their focus to mobile services. the world. The Canadian company aims to capture a larger share of Mobile technologies the Smar tphone market in the countr y and plans to use Brazil as Brazil dominates the Latin American an expor t base for Latin America. Internet market in terms of user
A major benefit of local manufacturing is the drop in price helping provide competitive advantage for RIM’s smartphone handset in Brasil. The Curve 8520 handset to be manufactured in Brasil will be cheaper than the imported BlackBerry models currently available. The aim should be to reduce costs and thereby to increase RIM’s marketshare in the Brazilian Smartphone segment.
The BlackBerr y cost
RIM’s Smartphone handset is currently offered by the four main players in the Brazilian mobile phone market: Vivo (Spain’s Telfonica SA and Portugal Telecom); Claro (Mexico’s America Movil SA); TIM (Telecom Italia Spa) and Oi (Brazilian company). ∆
numbers and the mobile Internet is growing. Moreover, cellphone Mobile Telephony has been in Brazil growth rates indicate that the mobile since 1990 and has experienced technologies will bring access to an explosive growth since then. the Internet to people who have not According to Anatel, (the national had prior access. Cellphones are telecommunications agency) the less expensive than laptops and are number of cellular phone users in affordable for a large number of users. Brazil in 1990 was only 667. Presently, More mobile users in Brazil have Brazil holds almost one third of all accessed the Internet on their mobile mobile users in Latin America. In 2009 devices. the country reached a total of 154,600 million cellular phone users, making RIM hopes to benefit from a growing the country the fifth largest mobile demand for Smartphones and from consumer in the world behind China, rising consumer interest in mobile Internet in Brazil. United States, India and Russia.
Photo by Black Berry.com
The cellphone market in Brazil
Brazil’s telecommunication market is expected to grow exponentially, despite the global downturn. Furthermore, the Brazilian cellphone sector has been fully liberalised. Competition is fierce in the mobile market as there are no restrictions on foreign capital. The government embraces this competition because www.discoverbrazil.ca
According to RIM’s Executive, Jim Balsillie, as well as the Curve 8520 model, the Canadian company plans to manufacture in the future other BlackBerry models in Brazil. RIM’s businesses in Latin America grew by 100% over the past six years. The The Curve 8520 model will be manufactured in Brazil
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