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BlackBerry Z10 tops expectations

The BlackBerry 10 flagship device sees optimistic uptake in the local market, contrasting with international reports.

Bonnie Tubbs
By Bonnie Tubbs, ITWeb telecoms editor.
Johannesburg, 18 Apr 2013
BlackBerry's "Hail Mary pass" is represented by its first two 10 OS devices - the Z10 and Q10.
BlackBerry's "Hail Mary pass" is represented by its first two 10 OS devices - the Z10 and Q10.

The South African market has taken well to BlackBerry's reengineered platform - anticipated by many to be the Canadian smartphone company's Hail Mary pass - with local operators declaring uptake and sales have exceeded expectations and consumers giving it a thumbs up.

This comes just under two months after the Z10 - the company's flagship device running on its new operating system, BlackBerry 10 - hit local stores, and is in contrast to reports that have been doing the rounds on the international scene.

Reports that emerged towards the end of last week painted the flagship device in an unfavourable light, stating that not only had sales of the Z10 been weak, but many of the consumers who did purchase the device, had returned it.

BlackBerry CEO Thorsten Heins challenged a report by Boston-based research firm Detwiler Fenton that claimed customer returns of the Z10 were actually outnumbering sales. Heins said data collected from US retailers and partners indicated customers were satisfied with their devices, and branded Detwiler Fenton's findings as "absolutely false".

Early days elation

BlackBerry's main channel partners - SA's network operators - say the BlackBerry Z10 has been well received and that, on the whole, customer satisfaction leaves nothing to be desired.

Vodacom - the first operator to start selling the device in February - says, while it is early days yet, "the BlackBerry Z10 has definitely exceeded our expectations".

Cell C, which received Z10 stock at the end of February, says sales of the device have been "above expectation, showing strong sales since its launch in March".

The operator adds: "As with any device, there will always be a few returns; however, we have not experienced any major issues." Customer feedback, says Cell C, has been on the whole positive.

Telkom Mobile echoes its fellow service providers, saying the Z10 has been "very well received, with sales exceeding expectations". The operator says customers began pre-ordering the device weeks before it was available in store. The free unlimited BlackBerry Messenger (BBM) data has, in particular, been a hit with BlackBerry buyers, the company adds.

MTN says the Z10 has been "received very well on the MTN network" and the operator is satisfied with customer uptake. Mike Fairon, GM of products and solutions at MTN, says since the BlackBerry 10 OS does not have a BlackBerry Internet Services component, the operator is trying to educate consumers that purchase the BlackBerry Z10 to create awareness of how the new OS functions.

Saving grace?

Regarding the redeeming qualities of BlackBerry's new platform, World Wide Worx MD Arthur Goldstuck says it is still too early to have any numbers to go by. However, he notes the Z10 is evidence that BlackBerry is up to the challenge when it comes to holding its own in what has become an extremely competitive smartphone market.

Having used the device himself, Goldstuck says it is a "tale of two experiences". He says, while some love the new BlackBerry, there have also been reports of problems.

"Some retailers tell me they are seeing returns and some are even hesitant to sell the device, because of customers reporting problems."

Some users, says Goldstuck, have said the phone is "buggy", while the big problem, initially, was the exclusion of open source instant messaging app WhatsApp.

"There is a massive crossover of WhatsApp and BBM among BlackBerry users. The typical BlackBerry user is also using WhatsApp - so without it many consider the BlackBerry as flawed. That issue is now resolved, so that takes away one of the points of dissatisfaction.

"Having said that, the responsiveness and features of the Z10 are light years ahead of the old BlackBerry and the ability the user has to operate in an application-based environment represents a new ecosystem for BlackBerry."

Goldstuck lauds the security of the device - a strong point also touted by BlackBerry as a distinguishing factor.

Ovum analyst Richard Hurst says locally - and elsewhere in Africa - uptake of the Z10 has been reasonably strong and what the vendor had anticipated. "There are several factors driving this - the loyalty and existing knowledge of the BlackBerry brand, and services and the increased uptake of smartphones. However, currently this uptake will be restricted to a niche market and will not be a mass consumer adoption due to the issue of price."

Hurst believes users of the Z10 will be pleasantly surprised, "particularly [due to] the fact that it is able to separate the personal and work applications and data".

He says the new reengineered platform from BlackBerry on both the device OS and the enterprise server sides have indicated BlackBerry intends to remain relevant in the market, particularly when it comes to enterprise customers.

"The OS and the enterprise server focus on the needs of the enterprise, with security being at the top of the list. It is interesting to note that BlackBerry have not opted for a silo approach in this regard and have also allowed other devices to be managed via its enterprise server service, opening the service to more devices. [This is] something which is becoming important in the bring-your-own-device era."

BlackBerry convert

Swift Consulting CEO and tech blogger Liron Segev says he has been using the Z10 as his primary device for some time now and is "overall very happy with it". So much so, he says, that he has abandoned his previous Android device.

In terms of BlackBerry's future, Segev says he thinks analysts make a mistake when they refer to BlackBerry 10 as some kind of Holy Grail.

"I think BlackBerry has a new strategy and a new outlook on the mobile market. It is about mobile computing, as they keep saying, not about phones and devices. BlackBerry 10 was released to give a 'wow' effect and for the company to show what they can do at the high end of the market."

BlackBerry 10, says Segev, is not a "magic cure", but rather the beginning of a turnaround and new direction for BlackBerry. "Obviously some analysts will see doom and gloom and then the loyal BlackBerry users will hail the new platform as the best ever - I think the truth is somewhere in between."

Segev says most of the Z10 users he has encountered are "very, very happy" with the device. "And these are a mixture of people - from original BlackBerry users, to former iPhone and Android device users."

The Q10 key

With the second BlackBerry 10 device - the Q10 - imminent, many BlackBerry enthusiasts say they are holding out for the hybrid device, which features the differentiating factor of a qwerty keyboard.

Beyond cellular

Adam Ely, founder and COO of Bluebox, will discuss the bring your own device tidal wave, and the resultant risks, rewards and challenges, at ITWeb Security Summit 2013. The Security Summit will be held from 7 to 9 May, at the Sandton Convention Centre. For more information, click here.

The Q10, says Goldstuck, will be the proof of market - whereas the Z10 was the flagship and proof of concept. He says there is a dawning realisation that the enthusiasm for BlackBerry has a lot to do with its keyboard feature. "It is expected the Q10 will have far greater appeal for the BlackBerry user."

Goldstuck positions the Q10 as "far more of a make or break" for BlackBerry - but that being said, the uptake of the Q10 in the local market will also be largely dependent on its pricing.

The Q10, says Segev, will be the next high-end feather in BlackBerry's cap. "It will be what people know BlackBerry to be. It is rumoured to be the first device to run the 10.1 OS, with far more features than the Z10. It could be 'the Z10 and more'."

Segev points out that the Q10 looks set to be up to R1 000 more expensive than its all-touch predecessor. This is according to an advertisement for pre-orders on Incredible Connection's Web site.

Goldstuck says pricing will be a key issue. "If [the Q10] is not accessible to the Curve market, it will remain a niche device, but if it is priced at a mid-level, it will be a phone that will more successfully capture the market than the Z10."

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