Vietnam’s budget cell phone market booms

HANOI, WED:

The Vietnam’s budget cell phone market is enjoying a boom when mobile phone service providers are shifting their attention to low-income customers, the Vietnam news agency (VNA) reported Wednesday.

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 (RM56 to RM103).

Being the lowest price in the market, more than 100,000 eCo handsets were sold after just one month, VNA said.

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

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 (RM124 to RM196) 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: The New Straits Times Online

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: