Domestic demand for mobile phones cuts into export surplus
The mobile phone sector recorded $940 million in trade surplus in the first four months of the year, a staggering 900 percent leap over the $94 million recorded in the same period last year.
In announcing the figures, the Ministry of Information and Communication attributed the increase to absolute rise in the number of exports as well as reduced costs and increased local production of parts.
Export of mobile phones and systems in the first four months of this year recorded $2.08 billion, a 112.2 percent growth over the same period last year. Sales in the domestic market also grew, although by a slightly smaller margin of 89.2 percent to reach 2.68 trillion won, according to data released by the ministry.
Of the 2.68 trillion won, mobile phones accounted for 1.9 trillion won, showing a 74.8 percent growth. While new subscribers bought 4.1 billion wireless handsets in the first four months, a 23 percent increase over the same period last year, 3.53 million mobile phones were bought as replacement handsets, a 140 percent jump.
"As the mobile phone market nears saturation point, the demand for replacement phones is likely to drive the domestic market," observed Lim Jong-tae, a ministry official in charge of technology policy.
While mobile phone sales totaled 5 trillion won in the first four months, a 92 percent increase over the same period a year ago, import of parts increased by 28 percent at 1.14 billion won. The ministry attributed the comparatively smaller growth in the imported parts to lowered unit price and increased local production of components. "Domestic production of parts which was mere 40 percent at the end of 1998 has been boosted to nearly 60 percent," explained Lim. He predicted that the figure would be further increased to about 80 percent by early next year. "However, the industry will continue to rely on imports from Taiwan for the low priced-parts," Lim explained.
Exploring markets in China and Vietnam that are emerging as new markets for CDMA (code division multiple access) equipment and handsets and encouraging SME (small and medium enterprises) to collectively purchase parts to get bulk discounts are some of the ways that the trade surplus figure could be further improved, according to the ministry.
Updated: 05/24/2000
by Kim Hoo-ran Staff reporter |
