Retailers rush to cash in as BlackBerry ban threat fades

Dubai: The UAE Telecommunications Regulatory Authority's lifting of the suspension threat on BlackBerry services has retailers rushing to cash in after a sales slump for the past two months.

Since the TRA announced that it would suspend some of the smartphone's services, consumers have been hesitant about purchasing the Canadian devices and considering Apple's iPhone and Google's Android-based models from manufacturers HTC, Sony Ericsson, Motorola and Samsung.

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"The BlackBerry obviously is the leading or the first choice of customers here and its sales fell drastically during the uncertainty," said Nilesh Khalkho, chief executive of Sharaf DG.

He said BlackBerry sales would now return to normal levels, comprising 80 per cent of smartphone sales.

An analyst of the telecommunications and technology industry said that since the initial announcement of BlackBerry service suspension consumers and corporations alike had adopted a wait and see approach on what to do with existing smartphone devices or the decision to purchase new ones.

"Not many people actually replaced their BlackBerrys," said Lindsey McDonald, a a consultant at Frost & Sullivan. Nilesh Bhatnagar, chief executive of electronics retailer Emax, a Landmark Group company, said he was keen to see the matter being resolved before the popular consumer and business IT exhibition Gitex.

"Whatever depression there was in sales, we are hoping will now be a thing of the past," he said.

Bounce-back expected

The BlackBerry market is expected to bounce back, and stock orders will go out to maximise reserves to meet demand.

"We'll make sure we can grab as much quantity as possible and have good deals during Gitex," Bhatnagar said.

Jumbo Electronics assistant and vice-president and head of telecoms Haresh Thawani said the company has been stocking up in case the suspension deadline of October 11 was lifted.

"Sales have been backed up for two months, so obviously there will be a surge," he said.

Research In Motion (RIM), the company behind its flagship BlackBerry, recently launched a new touch-screen model in an attempt to match the new iPhone 4.

The international launch of the Torch 9800 came the day after the UAE announced its security concerns over inaccessibility of RIM's data servers and amid a dampened market for its devices.