RIM to double BlackBerry harvest

Since late last year, Toronto- and Nasdaq-listed RIM has posted quarterly results that have consistently beat analyst expectations on strong demand for the flagship device, which offers secure wireless access to corporate e-mail, the Web and traditional digital diary functions.

"We had 500,000 subscribers in February 2003; we crossed the 1 million mark in February this year; and we expect to reach 2 million by the end of December or early January," said Patrick Spence, RIM's Asia Pacific vice president.

Demand is being driven by employees of small- and medium-size businesses--particularly in the United States, Hong Kong and Australia who want to access their email on the move, he said.

Increased messaging and e-mail usage in Europe, as well as new applications for the BlackBerry in the health care and real estate sectors in North America, will also boost growth, he added.

RIM's new subscriber additions worldwide have been rising 27 percent to 28 percent over the last few quarters, with Asia's growth rate "significantly" topping this number.

"Activations are growing strongly in Asia Pacific, faster than Europe and the U.S., but we're not selling into the same sized markets in terms of population," Spence said.

RIM has been working with many Asian mobile carriers, such as Australia's Telstra, which has sold more than 10,000 BlackBerry handhelds, and Hong Kong conglomerate Hutchison Whampoa, which has more than 500 corporate customers.

It also offers the service in the Philippines via Smart Communications, the cellular unit of Philippine Long Distance Telephone, and with Singapore Telecommunications, Southeast Asia's largest phone company.

Spence said Asia would contribute materially to RIM's earnings in 2005 to 2006 when it expands into China and India. The company has partnered with India's Bharti Group and expects to close deals with Chinese carriers eventually.

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