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Nokia still sees demand for low-end phones in RP

By Lawrence Casiraya
INQUIRER.net
First Posted 12:41:00 04/30/2008

Filed Under: Technology (general), mobile phones, Telecommunications Equipment, Computing & Information Technology

MANILA, Philippines -- The Philippines is already considered a mature market but there is still considerable demand for low-end handsets, according to Nokia’s top local executive.

William Hamilton-Whyte, Nokia Philippines country manager, believes the local market is still growing as telecom operators continue to expand coverage.

"Therefore demand for low-end phones continues to be an important share of the overall volume," said Hamilton-Whyte, responding to questions from INQUIRER.net via email.

Latest IDC figures show the worldwide mobile phone market reached 291 million in the first quarter this year, with Nokia being the leading vendor having a 40-percent market share.

IDC forecasted further demand from emerging markets, citing demand in particular for mobile phones.

Mature markets, meanwhile, will be increasingly characterized by highly competitive markets for replacement handsets and somewhat slower shipment growth, according to IDC.

Hamilton-Whyte said the Philippines is considered a mature market "when looking at technology and penetration."

"Operators provide the latest technologies for their customers and have been able to develop quickly a good coverage of the country," he said. "By doing so, operators have enabled a lot of Filipinos to enjoy mobile access and value-added services."

On the other hand, he said other Nokia handsets such as the N-Series appeal to individual tastes. Though steeper in price, he would not categorize these models as either mid- or high-end.

"Today we do not have a mid- or high-end phone, we have a phone that suits each individual. The user chooses what he or she wants as an extension of his or her personality or lifestyle," he added.

Asked about the replacement market, Hamilton-Whyte sees two scenarios: Consumers buying at the same price point to change their old phone to a new one, and consumers wanting more features from their phone and "therefore willing to shell out a few more pesos to upgrade their handset."



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