The world’s two largest cellphone makers, Nokia and Samsung Electronics Co Ltd, unveiled new phones on Monday, offering features comparable to iPhone and Pre, but at lower prices.
In the last two weeks Apple Inc’s launch of an updated version of iPhone and Palm Inc’s Pre model have heated up competition in the sweet spot of an otherwise shrinking industry.
“What is clear is that we are heading to one of the most competitive fourth quarters we have had,” Gartner analyst Carolina Milanesi said.
The holiday-fueled fourth quarter is usually the strongest sales season for handsets, and vendors launch their top models in time to reach the sales peak in the October-to-December quarter.
The cellphone market volume is expected to fall about 10 percent this year as recession dampens consumer demand, but the market for smartphones is expected to rise by between 10 percent and 20 percent, boosted by new and attractive models from many of the top vendors.
“Consumer demand for more capable devices seems to be accelerating despite the general economic doom and gloom,” said Ben Wood, a research director at CCS Insight. “Samsung and Nokia are playing smart by offering these sorts of products at punchy price points.”
Samsung revamped in one go its smartphones portfolio, unveiling four new models for its Omnia range — the Omnia II, the OmniaLITE and two OmniaPRO models, all using Microsoft Corp’s Windows Mobile software.
Samsung also launched a new mass-market “Jet” model on Monday, which differs from some 150 phones it launches per year with its full touch screen, a next-generation display and improved processor to deliver fast mobile Internet access.
Top cellphone maker Nokia launched three new handsets on Monday, including a new touch-screen model — the 5530 Xpressmusic — that would sell for 199 euros (US$280) before subsidies and taxes, starting next quarter.
“Nokia is trying to address the very competitive mid-range space given the prices of the Pre and the new iPhone,” Milanesi said.
“Nokia can also benefit from a lower contract tariff than these two devices have, which will make the products more competitive, but certainly not offering a comparable user experience,” she said.
The cellphone industry saw its worst-ever quarter in the first three months of the year, with sales falling 14 percent year-on-year and Nokia posting its first quarterly loss.
Lee Don-joo, head of sales and marketing at Samsung’s mobile unit, said he was hopeful phone sales would decline by between 8 percent and 9 percent this year across the industry, slightly less than the firm’s official expectation of a 10 percent drop.
“In the second half ... I do not see any special surge in demand. However, there is a small sign of recovery of the general economy. Hopefully, the mobile industry also will recover some,” Lee Don-joo said.
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