Cell phone producers compete over designs

Cell phone producers compete over designs

Sari P. Setiogi, The Jakarta Post, Jakarta

This has been quite a busy month for cell phone makers.

First, earlier this month, global leader Nokia launched its
latest model, the 6600. Several days later, SonyEricsson unveiled
its latest model.

Samsung, the South Korean electronic giant, which has never
concealed its ambition to become a leader in the cell phone
business, both in the world and in Indonesia, followed suit
several days later with an extravagant product launch aired live
on local television, featuring Indonesian celebrities.

With a population of more than 220 million and cell phone
users accounting for only 9 percent of the population, Indonesia
certainly has huge market potential for cell phone makers.

Since they were was first introduced in Indonesia about eight
years ago, mobile phones now feature among the most popular
communications devices in the country, with users ranging from
businesspeople and high school students to housemaids.

The number of cell phone users is expected to soar to 18
million by the end of this year, up from 11.4 million last year,
according to the Indonesian Association of Cellular
Telecommunications (ATSI). In comparison, fixed-line users now
total only 8 million.

All cell phone producers appear to be equally capable in terms
of technological sophistication. Therefore, they seek to attract
buyers through the design or appearance of their product.

A variety of designs are available on the market, from
"powder compact", better known as the clamshell design, to the
conservative, but popular "candybar" or monoblock design.

SonyEricsson country manager Alino Sugianto believes the
clamshell design will have a bright future in Indonesia, as it
has become very popular in China and Taiwan.

Earlier this month, SonyEricsson introduced four new handsets,
including two clamshell types, the Z200 and Z600.

The Z600 is equipped with a gameboard for game lovers and a
built-in antenna.

Separately, Samsung Electronics marketing manager Ade
Kurniawan said the clamshell type was popular for the high-end
market because it looked "elegant."

The Korean brand, quite popular with its clamshell products,
targets the middle to high-end market.

This month, the firm introduced the SGH-E700 in clamshell
design with a camera capability of 15 multishots and zoom
capability of up to five levels. This SGH-E700 is priced at Rp
4.25 million (US$500).

Robby Darmasetiawan, general manager of PT Dian Graha
Elektrika, which distributes Siemens cellphones, said the
clamshell design was popular only in China.

"People here still prefer the candybar design for its
practicality and sturdiness," he said.

For years, Siemens has consistently turned out candybar design
mobile phones.

A similar opinion was also expressed by Hasan Aula, general
manager of Nokia Indonesia. He also believed that Indonesian
people preferred the candybar design rather than the clamshell
for its simplicity.

No official data is available on the sales achieved by each
cell phone producer. However, industry players agree that Nokia
still holds the lion's share of the market at the moment,
followed either by SonyEricsson or Samsung. The fourth position
is occupied by Siemens.

Next year, all producers are optimistic of raising sales by 30
percent to 50 percent.

All producers believe that Indonesian cell phone users love to
discard their old cell phones for the latest models, even though
not all features on the products are usable due to the inability
of local operators to provide compatible technology.

Marketing communications manager of SonyEricsson Meiske
Suryadinata said Asian people, including Indonesians, differed
from Europeans or Americans in their desire to change handsets.

"That is why handsets that offer changeable casings are always
very popular in Asia. A new casing can make a handset look
completely new," she said.

Indonesian mobile phone subscriber growth

Year Subscribers

2003 18 million (est.)

2002 11.4 million

2001 6.7 million

2000 2 million

1999 1.1 million

1998 1.1 million

1997 1 million

Source: Indonesian Association of Cellular Telecommunications (ATSI)