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Budget cell phone market booms

Published: 27/09/2008 05:00

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VietNamNet Bridge - The budget cell phone market is enjoying a boom when mobile phone service providers are shifting their attention to low-income customers.

Some models of budget mobile phones of Samsung

VietNamNet Bridge - The budget cell phone market is enjoying a boom when mobile phone service providers are shifting their attention to low-income customers.

S-Fone is a leading business in the race with the launch of six new handset models branded eCo priced at between 270,000 and 499,000 VND each, the lowest price in the market. More than 100,000 eCo handsets were sold after just one month.

Together with the launch of cheap and convenient handsets, S-Fone also offered a special promotion programme which presents newly activated eCo subscribers with 1.5 million VND in their accounts.

Following S-Fone, the most popular mobile service provider in the country MobiFone also plans to introduce its low-priced cell phones with attractive subscription packages.

Recent market surveys revealed that the demand for low-range cell phones is on the increase. The demand for this product has risen to 70 percent of market share from around 50 percent at the end of last year. It is predicted that 90 percent of first-time mobile phone users will choose a cheap model.

Telecom businesses explained that customers are attracted by not only easy to use functions and cheap prices of the product but also cheap subscription fees and attractive promotion programmes offered by service providers.

The fee race among mobile phone service providers has enabled consumers with modest income to access the service.

Models priced between 599,000-950,000 VND each made by Nokia, Motorola, Samsung and Sony Ericsson are also selling very well while S-Fone said it is unable to meet demand for eCo handsets.

The German market research company GFK forecast that Vietnam ’s mobile phone retail market will grow by around 35 percent this year.

(Source: VNA)

Update from: http://english.vietnamnet.vn//tech/2008/09/805933/

Provide by Vietnam Travel

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