Plans laid out for hot smart phone market

The battle for the smart-phone market in Thailand this year is expected to be tight amid heavy competition. Many factors are expected to drive dramatic growth of this market, including new devices and platforms and the establishment of a nationwide third-generation cellular network.

The deployment of the 3G network will catalyse consumers’ increasing adoption of smart phones that can take advantage of this technology. At the same time, the four smart-phone platforms, iOS, Android, Windows Phone8 and Blackberry 10, are ready to lure users and gain market share. 

More people will turn to these devices because they want to experience social media with such communication applications as LINE and ChatON. 

 

Half the market

IDC Thailand has forecast that the smart-phone market will expand by 40 per cent to 7.3 million units this year. The two main platforms for smart devices are Android and iOS, with Windows Phone and BlackBerry as the other choices. Worldwide, smart-phone shipments this year will number 918.6 million units, about 50.1 per cent of total mobile-phone sales. By the end of 2017, IDC forecasts that 1.5 billion smart phones will have been shipped worldwide.

 

Nokia aims to be market leader 

Nokia aims to become No 1 in Thailand’s smart-phone market by differentiating its products from rivals. Nokia Corp chief executive officer Stephen Elop said during a visit to Bangkok that the company’s key strategy was to offer differentiation for customers in both technologies and design. 

Nokia (Thailand) managing director Yantana Simavanichkul said the company’s mobile-phone business focused on three main market segments: affordable smart phones under Nokia Asha, feature phones, and the upscale Lumia family of smart phones. 

Elop wants Nokia to connect with the next billion smart-phone users with affordable devices. The three key challenges are providing affordable content and data, delivering an “app economy” for feature phones, and enabling effective content discovery. Yantana said that by the next quarter, Nokia would offer new phones to the Thai market including Nokia 105, Asha 301, and Lumia 520 and 720. 

The company expects to retain its leadership in the entry market. It also aims to lead the market for affordable smart phones in Thailand this year. In the overall smart-phone market, Nokia aims to be in the top three by the end of this year. 

According to the German market-research group Gfk, Nokia is ranked in the top three in the smart-phone segment, including Nokia Asha. Nokia aims to be in the top in Thailand with its Lumia family, excluding Asha. 

Nokia shipped more than 14 million Lumia units worldwide last year. 

Lumia on the Windows Phone 8 platform is the focus of Nokia Thailand this year. Lumia 920, 820 and 620 are already available, with Lumia 720 and 520 on their way.

“Lumia 720’s price will be Bt11,000, while Lumia 520 is around Bt6,000,” Yantana said.

 

LG targets Thailand 

Globally, LG is one of the leading smart-phone manufacturers, reporting sales of more than 10 million Optimus LTE models worldwide, a result of the company’s aggressive push into fourth-generation markets. In Thailand, LG aims to be No 3 in the smart-phone market this year, up from No 5 in 2012, said LG Electronics (Thailand) marketing director Thunyachate Ekvetchavit.

The firm last week launched its latest smart phone, the LG Optimus G, in the Thai market.

The head of the Thai unit’s mobile communications group, Somsak Athisaitrakul, said the Optimus G was LG’s flagship smart phone and was expected to be a great success this year.

LG is conducting a “Code Name G” Facebook campaign, offering chances to win an Optimus G, Optimus L7, or other gifts worth more than Bt100,000. Consumers can participate in this campaign at www.facebook.com/thailandlifesgood from now until April 10.

The LG Optimus G is now available, and supports 3G from all telecommunication operators by using quad-band technology to function on 850, 900, 1,900 and 2,100 megahertz. It is priced at Bt19,900 (including value-added tax), including a free high-quality case imported from South Korea, as well as protective films for the front and back of the handset.

Sivakorn Damrongphatr, marketing manager for mobile communications at LG Electronics (Thailand), said that this year LG would focus on three main factors of success: products, channels, and marketing. LG will launch 15 models to the Thai market throughout the year. It will inject Bt200 million (8 per cent of its revenue), up from Bt150 million, as its marketing budget this year. This year 95 per cent of LG’s mobile sales will be smart phones, Sivakorn said.

He added that LG would focus on the mid-to-high-end market represented by its L Series, which will bring in around 70 per cent of its smart-phone revenue. The rest will be premium phones. “This year we aim for Bt2.5 billion in revenue, 95 per cent from smart phones. Last year’s total mobile-communications revenue was Bt2 billion.” 

 

Samsung clings to the top

Samsung is the most significant rival to the iPhone. Robert Yi, Samsung’s senior vice president and head of investor relations, said competition in the handset sector would intensify further as demand slows and the mid-to-low-end market expands this year. 

Thai Samsung Electronics aims to maintain its market leadership by focusing on every smart-phone segment from entry level to the mid-tier and high-end markets. 

Wichai Pornpratang, Thai Samsung Electronics vice president for telecommunication, said the smart-phone market this year would be very exciting and very competitive. The market is growing explosively, both demographically and geographically. “As more users come in, we serve them with affordable smart phones. The flagship product now is Galaxy Y. We provide them with training on using smart phones. “Our goal is to help users get the most from using smart phones,” Wichai said.