re: US Handset Market - Nokia challenge from LG - Panasonic - Samsung - Siemens
* $3.7 billion in U.S. sales projected this year
* 22 million units projected this year, up 16 percent from last year
>> Vendors Jostling For Room On Top Tier
Malcolm Spicer
March 26, 2001
Wireless Today
The number of wireless phone vendors described as major players in the U.S. market could expand this year as at least four companies set their sights on breaking into the top three slots in handset sales.
This is a year for change in mobile phone sales rankings, LG InfoComm U.S.A., Panasonic, Samsung and Siemens [SI]told Wireless Today last week at the CTIA Wireless 2001 trade show in Las Vegas.
"The market is a little saturated, but we see a great opportunity," said Bridget Schoeffel, corporate relations manager for San Diego-based LG InfoComm U.S.A., which is the North American wireless division of Seoul, Korea-based LG Electronics' LGE business unit.
LG InfoComm sees the opportunity because of its experience building CDMA handsets, Schoeffel added. LG Electronics was the first company to build handsets using Qualcomm's [QCOM] CDMA technology. At the trade show, LG InfoComm introduced a tri-mode model to work on CDMA 800 MHz cellular networks and CDMA 1900 MHz PCS systems, as well as on analog networks.
LG Electronics began providing phones to CDMA carriers in Asian markets nearly 10 years ago, but those carriers used their own brands on the devices. When LG InfoComm began supplying handsets to operators in North America and South America two years ago, it began building its brand. Its largest customers in the Western Hemisphere are Sprint PCS [PCS] and Verizon Wireless.
"The carriers haven't known LG as a strong enough brand to market to consumers on our logo," Schoeffel said. "That's all changing now."
LF InfoComm expects its brand recognition to grow because it offers phones that carriers know customers will want, she added. Handset vendors ahead of LG InfoComm in sales generally don't give carriers a choice about what phones they will supply, Schoeffel said.
"We just want to give the carriers exactly what they want," she said. "By doing that we can offer phones at a reasonable price."
Panasonic, a unit of Matsushita Communication Industrial [MC], also said it is listening to what kind of phones carriers want instead of telling them what kind they'll get. That approach, Panasonic Vice President Tom Bryant said, was a key in attracting AT&T Wireless [AWE] in January to begin offering TDMA models made by the company.
Including the latest features doesn't guarantee those products will sell, or that they're ready for the market, Bryant said. "The top three are selling their products that are just technically ready for shipping," he said.
The AT&T Wireless supply agreement is Panasonic's first with a U.S. carrier. Panasonic won't supply TDMA models to any other U.S. carrier, Bryant said. "It's a good thing for us and for them," he said.
However, Panasonic hopes to pick up more U.S. handset market share with a GSM phone that has general packet radio service (GPRS) capabilities, which it plans to introduce in a year, Bryant added. "It's definitely not an exclusive product for AT&T," he said.
Like LG InfoComm, Panasonic is offering carriers only what they want in a phone. For instance, the TDMA models it is supplying AT&T Wireless aren't equipped with micro browsers, which enables the carrier to offer the phones at low- to mid-tier prices.
In addition, Panasonic is focused on making smaller and lighter phones than competitors. "Everything else is heavier," Bryant said.
Siemens is linking its attempt to climb in U.S. sales to two new GPRS models. The first model will be available in the United States next month and will work on GSM 800 and 1900 MHz networks and on analog networks.
The second model, available late this year, can be used on TDMA 800 MHz and 1900 MHz networks and on GSM 900 MHz and 1900 MHz systems. That feature will increase the number of markets in which the phones can be used.
"This dual-mode phone gives Siemens a strong position to supply phones that meet the demand of carriers and their customers as the transition from TDMA to GSM is made," said Florian Seiche, vice president and general manager of the mobile phones unit in Siemens' Information and Communication Mobile unit. "It gives us the opportunity to be a significant player in the dual-mode GSM/TDMA space." Samsung Telecommunications America is linking its U.S. mobile phone market plans to strength numbers. It is rolling outs its first GSM phones for U.S. networks and a CDMA smart phone, along with five other new models that will hit service providers and retail stores during the second and third quarters.
The Bottom Line
Along with Motorola [MOT] and Ericsson [ERICY], which struggled last year to remain among the leading mobile phone vendors, these four companies must face another competitor in the race to take market share: top mobile phone vendor, Nokia [NOK].
All these handset manufacturers are competing for a portion of the $3.7 billion in U.S. sales projected this year by the Consumer Electronics Association. That sum is up 16 percent from last year and represents sales of 22 million units. <<
- Eric - |
