Mobile metamorphosis: An analysis of consumer preferences

KARACHI: Despite inflation, mobile phones are consistently becoming less of a luxury and more of a necessity. Realising the potential in the sector, Chinese, Korean and Taiwanese firms have entered the market in an effort to give consumers more choices and challenge the dominant position of Finnish brands.

A rising number of mobile phones are imported every month, according to data from the Federal Bureau of Statistics, with imports jumping 76 per cent from 2009 to 2010.

Despite the headway these countries and their brands such as Samsung, LG, HTC and Q-Mobile are making, they still have not been able to displace the Finnish cellular giant  Nokia. According to Karachi Electronics Dealers Association (KEDA) Chairman Muhammad Idrees, Nokia leads the market with 500,000 units imported each month.

He told The Express Tribune that Q-Mobile and other Chinese cellphones have the second largest market share, with a combined total of over 100,000 units imported every month. Idrees said that Samsung’s market share stood at around 100,000 sets every month, while LG’s share is roughly half of Samsung’s at around 50,000 sets.

KEDA Information Secretary Hanif Diamond underlined that 70 per cent of the phones sold in the country – regardless of the brand – have prices in the range of Rs2,000 to Rs2,500. Twenty per cent of the phones come in the Rs5,000 to Rs10,000 range, while the remaining 10 per cent are priced at Rs10,000 or above.

According to an informal survey of Karachi’s Saddar mobile market, 56 per cent of all mobile phones sold are of Nokia, 29 per cent are Chinese, 11 per cent are Samsung, three per cent are LG and one per cent is Motorola.

Tianamen phone square

Previously, despite the market being flooded with Chinese mobile handsets, promising the world for half the price of a Nokia phone, they were bought by a small segment of the market. However, Q-Mobile changed that with an unprecedented, provision of warranty.

Other than warranty, Q-Mobile is distinguished from other Chinese brands through a marketing campaign that has apparently been appealing to the target market.

The affordability of these phones has earned them popularity among the low-income market segment.

Varying preferences

The Express Tribune tried to ascertain what features potential buyers were looking for when purchasing a mobile phone. Based on the answers given by prospective buyers, those opting for Chinese mobiles were gravitating towards Q-Mobile because of previous bad experiences with other Chinese mobiles.

When asked as to why Nokia handsets – which are considered to be reliable, tough and long lasting – are not preferred over their Chinese counterparts, buyers said that in their desired price range, Nokia did not offer music playback.

When questioned about the role of the dual-SIM facility – which several Q-Mobile handsets are equipped with – most buyers dismissed the feature, saying that despite its usefulness, it was not the reason for their purchase.

Published in The Express Tribune, February 18^th, 2011.