Opinionated comments on mobile phone industry news

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Thursday, November 30, 2006

 
Market leaders move to emerging markets
Nokia And Motorola Ready To Rumble In Emerging Markets points out that they need to put more efforts into these markets to expand the sales volume (yet not necessarily market share). Both China and India are mentioned as key such markets, as well as East Africa, Eastern Europe and Middle East, yet I believe India and Africa will be most extreme when it comes to pricing. These countries will though also be interested in more costly phones as the salaries are increasing steadily in the cities, and most don't have PCs, so the mobile phone is a logical device for both telephony and information access. I would therefor guess that there will be a lot of service innovation in these countries, especially China and India.

Quote: Merrill Lynch says developing countries -- including in Southeast Asia, Africa, eastern Europe and the Middle East -- will consume 63% of global phone sales in 2007, up from 42% in 2003.
That's very interesting, as it indicates manufacturers will be more controlled by these markets' requirements than of the "Western world's".

Already almost all phones are made in Asia, even though there might be somebody else's brand slapped on the device. What's odd is that runner-ups Samsung and LG has trouble taking market share from Nokia and Motorola. Samsung for sure needs to make more low-cost devices. They recently left the Indian market as they couldn't generate profit. Why Nokia and not Samsung? Due to Samsung's way of developing phones where several labs compete with each other, using any technology components they find on the market. This sounds way more expensive than Nokia's and Motorolas' more streamlined approach with a few platforms and application suites, and surely also just a few providers of hardware,.

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