Low-end cell phones still dominate market

The Jakarta Post, Jakarta

Low-end cellular phones will continue to dominate the market as the number of cell phone users rises, according to a mobile phone manufacturer.

Sony Ericsson Mobile Communications International in Indonesia estimates that out of the more than 20 million cell phone owners, about 60 percent of them are using low-end cell phones with integrated cameras.

"Low-end cell phones that cost up to Rp 1.5 million (US$157), will continue to dominate the market with a 60 percent share," said Sony Ericsson Indonesia general manager Alino Sugianto on Wednesday.

"Mid-range cell phones, priced between Rp 1.5 million and Rp 2.5 million, have a 25 percent market share while the remainder are high-end products."

To keep up with market demand, Sony Ericsson, the second- biggest mobile phone manufacturer in Indonesia, will continue to produce entry level products.

"We are not only developing high-end cell phones but also low- end ones," said Alino, adding that Sony Ericsson's low-end cell phones, like the T230, contributed the lion's share of the company's sales last year.

He also said that Indonesia was not yet fully prepared for third generation (3G) services, which enable cell phone subscribers to enjoy triple-play technology such as video streaming, video conferencing and much faster data transfer.

"Cell phone manufacturers are racing to release new products compatible with 3G technology. In Indonesia, the preparations are in progress. Maybe by the end of the year, the country will be ready for 3G," Alino said.

Sony Ericsson, which this year ranks sixth in the global market, is preparing to launch four products compatible with 3G with price tags of over Rp 3 million.

The company's product marketing manager, Samudro Seto, said Sony Ericsson was planning to develop programs that would support the cultivation of brand conscious and loyal subscribers.

"We will continue developing programs like WorldQuest to show appreciation for our loyal users all over the world," he said.

Sony Ericsson WorldQuest 2005 is a global reality game created by Sony Ericsson Mobile Communications.

The game allows contestants to combine their wit, cunning and speed with leading mobile technology to complete challenges as part of a race to become the "Master of Mobility". (001)