Research in Motion (RIM), make of the BlackBerry line of smartphones, has finally found a Chinese partner to distribute its devices in China. This moves follows the recent entry of Apple's iPhone into China, via the carrier China Unicom. In trading on NASDAQ, RIMM finished Monday up 2.6 percent at 60.28.
The deal, which was announced Monday, will see RIM team with Hong Kong-listed Digital China to distribute BlackBerrys in mainland China. Currently, RIM only sells its older BlackBerry 8700 model in China through carrier China Mobile. China Mobile is the largest carrier in China, but was eschewed by Apple in favor of smaller China Unicom.
Digital China is based in Hong Kong. It has 19 regional distribution centers and about 8,300 employees, according to RIM’s press release. It is an IT service provider / distributor, not a carrier.
Although RIM has a foothold in China in the Enterprise, consumers in China prefer touchscreen devices, says Piper Jaffray Analyst Michael Walkley.
"That's where I struggle with RIM being so positive to get into China. Other than big companies who have English-speaking employees and a lot of them already have RIM through their organizations, just getting a consumer push it would have to be through some of their new touchscreen products."
At the same time that RIM is trying to expand its BlackBerry reach in China with Digital China as a distributor, it's trying to increase its work with China Mobile, as well. RIM and China Mobile will hold a news conference in Beijing tomorrow at 11 AM local time to detail of plans to “strengthen the development” of the BlackBerry in China, according to an invitation seen by Bloomberg.
Written by Michael Santo
HULIQ.com
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