MAKATI City, Philippines -- Philips wants to be the "next possible choice" after the dominant Apple iPod brand for music players, local executives told INQUIRER.net as they introduced several MP3 players into the market.
With an estimated 400,000 MP3 units sold every year in the country, Philips said it is going after a market that Apple has not fully addressed. This market is one that Chinese brands are now dominating, according to Rico Gonzales, CEO of Philips Electronics and Lighting Inc. and general manager of Philips Consumer Lifestyle.
"Consumers still want to go for known brands. So we're the next possible choice next to the 'A' brands," said Gonzales, referring to Apple.
Vidyut Kaul, consumer marketing manager of the Philips Consumer Lifesytle, said the company was targeting to sell 80,000 units this year, as they focus on the "mid-end consumer" market in the Philippines. The company also aims to achieve a 15-percent local market share.
Philips is also targeting the 15- to 35-year-old age group who can afford to buy mobile phones.
The company's pricing strategy hopes to boost its entry into the local market, considering that its nearest competitors are often unknown Chinese brands or even fake products.
Within the year, Kaul said that Philips will come up with a Rhapsody website for Filipino consumers. The partnership with Rhapsody, a music download website, will address the need for music and video content, the executive added.
Gonzales believes "this is the right time" to enter the local MP3 market, as they aim to broaden their distribution channel in the country. They will be working with local distributor Microwarehouse for their MP3 products.
Kaul said Philips will have 300 to 500 retail stores carrying its MP3 products.
Philips introduced six digital music players that target young college students or working executives who are tech-savvy.
"We are not competing with Apple for their market leadership position," Kaul said.
Some of the MP3 players also support video formats, which will target the entry-level Apple video player products.