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.