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Asian Vendors Take on Nokia in 3G Market

September 4, 2003 - source: BWCS

Nokia is in danger of falling behind its rivals in the development of handsets for 3G mobile services, a report in today’s Financial Times claims. Vodafone is believed to be in talks with Asian vendors Sanyo and Samsung to supply handsets for its 3G launch, scheduled for next year, in a move to become less dependent on the Finnish mobile phone giant. Hutchison, which provides the UK’s only 3G service to date, is also looking elsewhere and is said to have put back the sale of Nokia phones until next year because they do not yet support live video calls.

Nobody can ignore Nokia’s leading position in the global handset market. Nokia phones accounted for 35 percent of shipments in the second quarter this year, which is light years ahead of nearest rival Motorola with 13.4 percent and Samsung with around 10 percent. However, Asian handset makers have a strong background in data applications and enhanced features such as video and high definition colour display, which will give them an advantage in the developing 3G market.

A report in the South China Mobile Post said Singapore operator SingTel was witnessing a shift in preferences among phone users. “We see an increasingly larger proportion of customers buying handsets from Asian suppliers,” SingTel’s vice president for consumer products Hui Weng Cheong told the Hong Kong daily.

Back in the UK, some operators are complaining that Nokia has not been responsive enough to their needs. Asian manufacturers are said to be more willing to design phones that fit the operator’s brand image rather than their own. Charles Dunstone, CEO of leading phone retailer Carphone Warehouse, warned: “If Nokia does not have a good competitive 3G phone by this time next year, this could start to cause some real erosion of their market share.”

 


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