Asian phone makers challenging Nokia

Asian phone makers challenging Nokia

Agence France-Presse, Singapore

Asia's mobile phone makers are mounting an aggressive campaign to
build their presence in the region but challenging the dominance
of heavyweight Nokia will be tough, analysts said.

Nokia's exact market share in the region is not available but
figures from technology research house International Data Corp.
(IDC) show the Finnish giant far outpaces its Asian rivals on the
world market.

In the quarter to June, Nokia maintained its number one
position in the global handset market with almost 41 million
units sold, or 34.6 percent of total shipments, IDC said.

Its nearest rival, U.S.-based Motorola, was a distant second
with 13.4 percent or 15.8 million units and South Korea's Samsung
placed third with 10.1 percent or 12 million units.

"I would say Nokia has got a tremendous amount of brand
equity... it's rock solid," said Bryan Ma, IDC's research
manager.

Asian mobile phone makers, already major domestic players, are
well-placed to make a big push in the region, where the device is
increasingly considered a must-have consumer item with high-tech
features such as cameras, radios and sharp colour screens the
standard.

"There is a fairly dramatic change in the evolution of the
handset market," said Manoj Menon, regional director for
technology practice at global research house Frost and Sullivan.

"The phone is not just about voice anymore. It's about
pictures and consumer applications like camera (functions),
ringtones," Menon said.

These industry shifts will boost Asian mobile phone makers'
efforts to expand their presence in a Nokia-dominated field as
most of them, such as Samsung, are already leaders in consumer
electronics, Menon said.

"What the Asian players bring to the market is their expertise
in consumer electronics," Menon said.

"They have traditionally enjoyed a good understanding of the
consumer psyche and they are bringing it to the handset market
and playing it to their advantage."

The much-anticipated migration to third generation (3G) mobile
networks, which promise enhanced functions such as video links
and fast Internet access, will also give an extra boost to Asian
efforts to establish a foothold.

South Korean and Japanese handset makers are world leaders in
data applications, a key feature of 3G technology, which gives
them a headstart.

Asian consumers are already beginning to embrace mobile phones
from South Korea and Japan, widely regarded as the most serious
challengers to Nokia.

Singapore Telecommunications (SingTel), the island's leading
mobile phone service provider, said it has detected a new
preference for Asian mobile phone brands at its retail outlets,
but declined to give figures.

"We see an increasingly larger proportion of customers buying
handsets from the Asian suppliers," said Hui Weng Cheong,
SingTel's vice president for consumer products.

"I think the Asian suppliers are pretty advanced in the
display technology... very high definition, high colour display
screens as well as the ergonomics of the user interface and the
design."

Nokia executives declined to comment on the Asian challenge
but maintained confidence in its strong leading position.

In new growth markets like India and Indonesia where mobile
penetration rates are still low, great potential exists for new
subscribers, said Robert Andersson, Nokia's regional senior vice
president for mobile phones. Tech-savvy mature markets such as
Singapore and Hong Kong also offer value-led growth opportunities
for the Finnish telecom giant.

"For Nokia, we believe there are opportunities for growth in
the mobile phone market and the company expects to see total
market volumes grow by about 10 percent versus 405 million in
2002," he told AFP.

"Nokia's aim is to be the leader in mobility for the long
term. Nokia will grow in both volume and value in the Asia
Pacific region."