Competition in premium market getting tight

Competition in premium market getting tight

Burhanuddin Abe, Contributor, Jakarta

The melody of Ryuichi Sakamoto's music softly reverberates in
a cafe, prompting a patron to lift his cellular phone and start a
conversation. The beautiful melody emanates not from the
loudspeakers in the cafe, but from the Nokia 8800 cellular phone
he is carrying with him.

This telephone, the latest Nokia series launched late June
this year, is another entry into the high-end market in Indonesia
today.

Competition is indeed getting stiffer in the premium GSM
segment, already feeling the presence of several similar products
like the Motorola RAZR V3, Samsung SGH-D500 and Sony Ericsson
K750i.

Interestingly, these new products are claiming to be 3G
(third-generation) cellular telephones even though Indonesia does
not yet have a 3G network. Clearly, these global manufacturers
seem pretty sure that it is only a matter of time before the 3G
network is established in this country.

Therefore, as of now, the benefits of a 3G cell phone used in
a WCDMA (Wide-band Code Division Multiple Access) network is
limited to being a means of connection for those traveling to
countries without a GSM network. If you own a GSM SIM card in
Indonesia, you can still use your number even when you travel to
Japan, where there is no GSM network.

Yet Indonesia is one of the world's biggest buyers of cellular
telephones. And the largest market for the sophisticated Nokia
Communicator series is Indonesia. That's why there was no
hesitation at all on the part of Hasan Aula, country manager of
Nokia Indonesia, when the 8800 series, available for Rp 9.4
million (about US$1,000), was launched.

"The buyers are indeed exclusive, but their purchasing power
is very strong. They make up the premium market and have high
taste," he said. These buyers are comparable to those wearing the
best Swiss watches, who drink French wines or who drive German-
made automobiles.

Aside from its digital music player, the iconic Nokia 8800 is
also provided with an SGVA camera. This triple-band cellular
telephone, which comes out in a highly graceful design, is made
of high-quality resin and stainless steel, while its glass parts
are scratch resistant.

It seems that the Finnish maker of Nokia cell phones want to
strengthen their position as market leaders. This year will see
not only improved quality in Nokia products but also the launch
of over 40 new types (about 3 types a month), not only for GSM
frequencies but also for the CDMA network, such as the 6230 and
6020 series.

The latest, Nokia 6235, is sleek and compact measuring 2.8 cm
x 2.8 cm and weighing 98 grams. A candy-bar cell phone, this
Nokia 6235, which is sold at Rp 2.3 million, is provided with
features such as a VGA camera, video, games, voice recording and
an FM radio.

Nokia has devised this particular marketing strategy because
they do not want to see their closest rivals -- like Motorola,
Sony Ericsson and Samsung -- chip away at their market share.

Motorola, for example, which has now moved into second
position, booked a turnover of US$31.3 billion in 2004. Its best-
selling product, the RAZR V3, which is sold at Rp 3.5 million,
was named the Best Mobile Phone Design by Asian Mobile News Award
2005. The clamshell RAZR V3 is very thin and weighs only 95 grams
as it is made of super-light titanium. Its features include a VGA
camera, MP3 ring tones, Java games, Bluetooth and a video capture
facility.

Yanty Agus of Motorola Indonesia said that aside from
regularly introducing inexpensive mobile phones for youngsters,
the U.S.-based company also regularly launches its high-end
products for the upper market segment.

Three Motorola superior series are PEBL V6, SLVR V8 and V280.
The PEBL V6 is highly elegant with its round, refined shape while
its shiny metal body lends it beauty and a dash appearance. The
razor-thin candy-bar-shaped SLVR V8 weighs only 85 grams, while
the V280, with its sleek, thin and artistic design and its multi-
media and multi-censor connection facilities, is suitable for use
when getting along with your friends and family members.

In addition, Motorola has also introduced the V 1150 folded
mobile phone under a new name of V3g, with the "3g" being short
for "gorgeous, glamorous and gifted." This third-generation cell
phone is provided with an integrated camera, two-way video
calling and the support of a multi-media file that enables the
user to play back any of his favorite songs, an extract of a
soccer match or even a preview of the latest movie.

Meanwhile, Sony Ericsson has claims its K600i as a mobile
phone with a futuristic design. It may be of the same weight and
size as 2G mobile phones available on the market now but it
features a classical modern style. Named 2005's Best Mobile
Imaging Device of the Year, the mobile phone has been available
in Indonesia since mid July. Sold for Rp 4.6 million, it comes
complete with a 1.3 Megapixel digital camera. "In our estimate,
K600i will be a trendsetter for 3G mobile phones in Indonesia,"
said Alino Sugianto, country manager of Sony Ericsson Indonesia.

Samsung is also a mobile phone manufacturer that must be
reckoned with. This South Korean company boasts its palm-sized,
black SGH-D500, and has technology-minded high-end mobile phone
users set as its target.

A very elegant mobile phone sold at Rp 4 million, SGH-D500 has
been named best cell phone at the 3GSM Conference held in Cannes,
France this year. It reflects Samsung's superior edge in various
areas: a very clear THT monitor screen, a digital camera with 1.3
Megapixel resolution and Bluetooth non-cable connectivity. A
slide-up type weighing 99 grams, this particular mobile
telephone, which has a monitor screen with a resolution of 176 x
220 pixels and 262,000 colors and a storage capacity of up to 92
MB, may now be the smallest multi-media cell phone available on
the market.

Meanwhile, on July 23, Samsung also launched the SGH-E730
series at the 2005 Indonesia Cellular Show at JCC Jakarta. This
newest product of Samsung, launched under the motto of "See the
Unseen, Feel the Future," is claimed to be a mobile phone of the
future with a graceful design and maximum capability.

A mobile telephone is indeed not just a mere communications
gadget with a standard (voice) capability. Samsi Dharmawan, the
IT manager at Jakarta's Senayan Square, for example, has said
that his life "relies" on this small gadget.

"For an executive like me, the mobile phone I need is one
complete with data-processing features, like Excel, Word, Power
Point, and so forth," said Samsi, who uses the latest Nokia
Communicator.

In the present digitalized era, things quickly become history.
Mobile telephones show greater innovation and their life cycle
gets even shorter. You have standard mobile telephones, but you
can also have cell phones with maximum capabilities, of course,
at much higher prices than ordinary mobile telephones.