Nokia Leads Race For Next Billion Mobile Users
By: Reuters
| Jun 23, 2007
Rivals to Nokia Oyj have their work cut out to catch the world's biggest maker of mobile phones in the race to win the world's next billion cellphone users.
Industry figures at the CommunicAsia telecoms trade fair in Singapore this week were eager to take advantage of the continent's huge untapped markets, where only one person in every three owns a handset.
But barriers to entry into markets such as India are significant and Nokia is already well established with a wealth of distribution channels and 40 percent of the Asia-Pacific market - higher than its 36 percent overall global share.
Risks are also high - as evidenced by Motorola, Nokia's closest competitor in the lowest end of the market and overall, whose drive to win more of this type of business pushed it into the red last quarter.
Sony Ericsson has already abandoned the very low end of the market to competitors.
"Nokia has access to a huge salesforce in emerging markets that no other vendors or operators can match today. Motorola, Samsung and the rest remain some way behind," said analyst Neil Mawston of Strategy Analytics.
The cellphone industry expects the number of people owning a mobile phone worldwide will grow to at least 4 billion over the next three years from 3 billion currently.
Between 300 and 400 million of these new users are expected to come from India alone, where users can take advantage of call rates as low as 1 U.S. cent a minute.
Tens of millions of people living in rural areas of India are buying their first phone - in most cases, an ultra-cheap model.
A strong retail presence is crucial in Asia, where more than 70 percent of consumers decide which phone to buy at the point of sale - in contrast to Europe and the United States, where phones are often bought from operators who subsidise them.
"If rivals want to catch Nokia in APAC (Asia Pacific) they will need to expand their distribution channels," Mawston said, adding that the firms would need also to expand their product portfolios.
Samsung had a 16 percent share in the region in the first quarter, while Motorola held 12 percent, according to Strategy Analytics.
Nokia's much larger scale has also allowed it to keep its gross profit margin for low-cost handsets above 25 percent, close to its global average.
But adding tens of thousands of retail outlets or opening stores in just India is expensive, even for large vendors.
"I'm not saying it cannot be done, but it needs quite a bit of investment," said Urpo Karjalainen, head of Nokia's business in the area.
| Ads by Google | ||
Why don't you post one?
LATEST NEWS
- Virgin Mobile Launches Data Services
- Star Launches Online TV Service
- China Paper Says Web Filter Only a Matter of Time
- No 'Pinda daan' Online Say Hindu Priests in Gaya
- Gamer Steals From Virtual World to Pay Real Debts
- Largest Commercial Satellite For Cellphones Launched
- MySpace Suicide Conviction Tentatively Dismissed
- Shared Keyboards Are Hot Spots For Infection
- Samsung Marine Launched in India
- Spammers Ride on Jackson Death
| Ads by Google | ||
RELATED
Hot Searches & Keywords :
5 megapixel
AMD
ATI
Acer
Adobe
Airtel
Apple
Asus
Benq
Blackberry
Blizzard
Blu-Ray
Bluetooth
CES 2007
Canon
Capcom
Creative
DVD
Dell
E3 2007
E3 2009
EA
Facebook
Firefox
Google
HP
ITunes
Intel
Internet
Ipod
LCD
LG
Lenovo
Linux
Logitech
Microsoft
Mobile
Mobile Games
Mobile Phone
Mobile Phones
Motorola
Mp3
Myspace
Nintendo
Nokia
Nvidia
PC
PMP
PS2
PS3
PSP
Philips
Samsung
Sandisk
Skype
Sony
Sony Ericsson
Toshiba
Touchscreen
Ubisoft
Valve
Vista
Voip
Walkman
Website
Wii
Windows
Windows Mobile
Windows Vista
WoW
Xbox 360
Xbox Live
Xbox360
Yahoo!
Youtube
digicam
digital camera
iPhone
iPhone 3G
mp3 player
social networking site
test
windows mobile 6.1
yahoo
| Ads by Google | ||
|
|
Sections
Products
Camcorders |
Controllers |
CPUs |
Desktop PCs |
Digital Cameras |
Digital Video Recorders |
DVD Players |
Games |
Gaming Consoles |
General |
GPS Systems |
Handhelds / PDAs |
Hard Drives |
Headphones & Headsets |
HiFi Audio Systems |
Home Theater Systems |
Input Devices |
Internet |
Laptops |
lenovo |
Low Level Components |
Mac Systems |
Mobile Phone Accessories |
Mobile Phones |
Monitors |
Motherboards |
MP3 / Audio Players |
Multi-Function Devices |
Networking |
Optical Drives |
PC Accessories |
PC Add-on Cards |
PC Cabinets |
PC Games |
Printers |
Projectors |
RAM Modules |
Scanners |
Software |
Speakers |
Telecom |
TVs |
Video Players |



