Chinese mobile phones gain higher market share

KARACHI: Low-cost mobile phones are gaining market rapidly and their sales have surged by over 50 per cent over the past two years (2008-2010), while the trend of keeping two cellphones is also gaining considerable popularity, say dealers.

The number of mobile phone users in Pakistan has exceeded 98 million, according to data recently released by the Pakistan Telecommunications Authority.

The data also showed that cellular density has reached 59.8 per cent. This means that 60 out of every 100 people have at least one mobile phone connection.

A short survey of major mobile phone markets in Karachi reflected that almost 70 per cent of cellphone users now have two mobile phones.

Mohammad Aamir, a representative of Mobile Zone, said that with the introduction of China-made, unbranded and cheap mobile sets, consumers find it easy to have more than one cell.

He said that with the arrival of Chinese mobiles, even established brands like Nokia, Samsung and LG have introduced their range of ‘budget’ cellphones. “Most brands have launched low-cost versions with their own names, and have different series and models averaging from as low as Rs1,800 to a high of Rs15,000,” he said.

This correspondent visited a significant number of shops to get an idea of mobile phone sales. Almost all dealers unanimously agreed that regardless of competition or the recession and economic woes, Nokia continued to be the market leader and its sales had not suffered any noticeable dent.

“Yes, indeed people are now buying Chinese mobiles in significant numbers, but Nokia has maintained its overall sales well,” said Aftab Ahmed, a dealer at the Saddar mobile market, Karachi.

He explained that consumers preferred expensive models of branded phones as their first choice, either as a status symbol or because they are cellphone lovers who like to indulge in the latest fad. Also these phones have a good resale value.

However, for a more rough use, people also keep second hand sets as they do not have a resale value, he added.

Another dealer, Sulaiman, said that there are other reasons for the people to keep two cellphones. “With the tough competition between service providers, call charges of one company may be cheaper while SMS package of another may be better. So people simply keep two or more SIMs depending on what suits them best,” he stated.

Also, he added, mobiles are a necessity now rather than a luxury. Many offices have started to provide their employees with cellphones as a fringe benefit, leading to higher statistics of mobile users, he stated.

Published in The Express Tribune, July 11^th, 2010.