Smartphones ring the changes on mobile market

In the overall sales of mobile telephones, smartphones have established themselves as the most dynamic segment. One of the main reasons is that these handsets, through the features they posses, have changed customers’ expectations when it comes to communications. BR reviews the latest developments in the portfolios of telecom operators.

Otilia Haraga

Statistically, the overall value of handsets in 2010 amounted to RON 19.9 million (calculated at an exchange rate of 4.2 RON per EUR). The volume of sold handsets soared last year to 249,000, from just 144,000. In March, the total number of smartphones used in Romania was 31,500.

Orange representatives tell BR the smartphone segment made up 15 percent of total sales in Orange Romania last year. “The growth was rapid, as this segment represented less than 4 percent in 2009,” they add. The rising trend has been maintained this year, and penetration will significantly grow through to the end of 2011 as new smartphones from Apple, Blackberry and HTC are launched.

“For this year, we estimate a growing trend in sales, with high interest in telephones that support data services. Handset transactions will be supported by smartphones that bring last generation technologies at prices that are more and more accessible. However, the price-quality ratio and the diversity of the portfolio will make the difference on a very dynamic market,” say Orange representatives.

The march of the smartphones is also because the features offered by smartphones have altered the way users view communication.

“There is a clear trend to migrate towards models that allow access to social networks and offer a multitude of instant communication means, extended storage possibilities, access to navigation via GPS and orientation with the help of integrated maps,” Orange representatives say.

Alexandru Munteanu, sales operation manager of Cosmote Romania, picks out features such as touch screen, QWERTY keyboard, camera with a resolution higher than 3 mega pixels, internal memory and memory slot card, MP3 Player and Wi-Fi connection as being among users’ favorite features.

“Based on the values posted in the first six months of the year, we expect smartphone changes to register significant growth compared to 2010, which is due both to launches of telephones with very attractive capabilities at affordable prices but also due to clients’ appetite for such handsets,” says Munteanu.

Customers are more and more interested in the operating system used by these gadgets but also applications that can be installed on the telephone, facilitating their multimedia experience, he says.

“In Western Europe, the criteria for choosing a handset have to do strictly with quality versus price. Over there, everyone will look first of all at what a handset has to offer and at what cost,” HTC officials tell BR.

“The Romanian customer, however, has been subject to influences from the former Soviet states in which social status today is very important and should be showcased in any accessory you have. Latin people also have a penchant

for beauty which brings additional appreciation for the design and the

quality of the materials,” say HTC representatives.

Mobile operators have launched handsets bearing their own brand which complete the portfolio of phones from producers. The latest model under the Cosmote brand is Cosmote move, which can be used by social media fans and businesspeople. The price starts from RON 1, if the buyer also takes out a Cosmote Enjoy two-year subscription.

Meanwhile, Vodafone recently launched its own branded smartphone, Vodafone Smart, which works with the operating system Android 2.2. Postpay clients can acquire this phone for free with a two-year contract. The phone can also be bought for EUR 9 (VAT included) as part of the Vodafone Complet 500 package with mobile internet at 500 Mbps for EUR 14.56 per month.

However, each of these operators has a plentiful offer of handsets from producers, which sell better or worse depending on the price, features and functionalities.

Of the practical models that offer basic functions, among the most sought after brands by Orange Romania customers are LG, Nokia and Samsung. On the smart phone segment, clients go for Apple, Blackberry, Nokia and Samsung, say Orange representatives. The operator is preparing to launch the LG Optimus 3D, Sony Ericsson Xperia Play and Orange Stockholm in the future.

Most recent launches include HTC ChaCha, the first handset that accesses a Facebook account via a dedicated button, available exclusively from Orange at prices starting from EUR 49 (VAT included) until August 31, with a Pantera 20 two-year contract.

Another handset that can for now be found only in the Orange portfolio is the LG Optimus Black, which has the brightest display on the market, available

from EUR 79 with a Pantera 20 subscription.

Other recent launches at Orange include the Samsung Galaxy S II, the top of the line at Samsung, which retails at EUR 149 (again with a Pantera 20 subscription); the Sony Ericsson arc, the top of the line in the Xperia range, available for EUR 179 (with a Pantera 20 subscription); and the Nokia E6, yours for

EUR 89.

In June, Cosmote Romania’s range welcomed the Samsung S5670 Galaxy Fit, available at RON 699 (including VAT, without connection) or from RON 1 (with the Cosmote Adventure tariff plan). A month earlier, another phone, the Samsung i9100 Galaxy S II was launched in Cosmote stores at a price of RON 2,399 (without connection).

Models such as the Nokia 1616, Nokia C1-01, Nokia C2-01, Nokia 1800, Samsung E1150 and Samsung E1170 are among the most popular entry-level phones at Cosmote.

“An unexpected success was the dual-SIM model Huawei 6600 D as well as the models under the Cosmote brand such as Cosmote Joy and Cosmote Sense,” says Munteanu.

In the smartphone category, the best sold are the iPhone 4, Sony Ericsson X8, Nokia 5228, Nokia C5-03, Samsung i5500 Galaxy 5, Samsung Galaxy Mini, Samsung Galaxy FIT, Motorola Flipout, Samsung i9000 Galaxy S and Samsung i9100 Galaxy S II.

otilia.haraga@business-review.ro

31,500

total number of smartphones used in Romania in March of this year

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