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)