Jon Russell

Android & Its Aim For Smartphone Market Leadership In Thailand

A recent Bangkok Post piece from Sasiwimon Boonruang looks at the potential for Android phones (devices that use Google's operating system) in Thailand.

In the West Android is seen as the closest match to an iPhone. With an app store, focus on mobile internet (internet is bound to all options as opposed to being an option itself) and numerous tie-ins with Google products, Android promises a smartphone experience as near to Apple's.

The arrival of the Google Nexus One, a wholly Google managed device, is likely to detract from Android devices but, for Thailand - where Nexus One has yet to get a release date - Android adds something new to the market.

While BlackBerry became fashionable in a very short time in 2009, its popularity is expected to shrink this year. Meanwhile, Google's Android is expected to become increasingly attractive.

The Bangkok Post has previously praised RIM's BlackBerry for stealing the lead in Thailand's small, but growing, smartphone sales. RIM's PR, fashion and charm offensive has built the brand a solid reputation in Thailand.

If it is not clear why BlackBerry's popularity would "shrink", it certainly not true to say this would be "expected" - far from it many expect BlackBerry ownership grow in Thailand.

Google recently launched Nexus One, an HTC-built phone using Android mobile software platform. Some believe that Android could enjoy the greatest mobile OS market share within the next few years.

While it is true to say that Android is a welcomed edition to a smartphone market which Apple had run away with, certainly in terms of hype and innovation, to say it could enjoy the greatest share of market - particularly with the Nexus One arriving - is a little excessive but Khun Sasiwimon is entitled to this opinion. 

Google claimed that Nexus One may not be a game-changer in terms of technology or pricing, but it does reinforce the company's ambition to become the first managed device platform (MDP) vendor.

I certainly haven't seen Google talking down Nexus One. It would be a unqiue strategy to put a dampener on your first entry in the mobile market, particularly if it has receieved constant speculation over the last few years as the 'Google Phone' has.

In the US, Android has reached critical mass across multiple carriers, but not yet in Thailand.

HTC (Thailand) country manager Nattawat Woranopakul, who pioneered the Android platform last year, admitted that it's pretty hard to encourage the market, however HTC has confidence in the potential of the open Android platform.

As recently blogged the smartphone market in Thailand is truly a difficult nut to crack given the average wage across Thailand. Currently the target market is affluent members of the public, many of whom may already have an iPhone or BlackBerry which they are quite content with, having spent a large amount of money purchasing it.

HTC has developed the innovation of an on-top user-interface.

There are already more than 10,000 applications in the Android marketplace,with more coming this year, said Nattawat, adding that he expects the market to become more exciting once Google takes more action in the Thai community.

Android apps are certainly impressive although they do not yet have the range of depth of the iPhone app store.  HTC/Androids is likely to find little success competing with Apple over apps.

"There are many amazing and unique Android applications and the advantage of Android is that almost all the applications are free of charge, contrary to many of those on the iPhone," he said. Furthermore, the whole internet can be searched and data retrieved by Android-based handsets.

This issue of price is a competitive advantage but iPhone apps are not outrageously expensive and more than affordable for iPhone customers. Apps are generally judged on user experience and quality of service rather than price alone, again making it difficult a difficult groudn on which to compete with Apple.

"If you want to download a song, you can do it on the phone legally, while users can upload to YouTube, for example, through their Android phone. And if you want to send a song to someone beside you, just cock your wrist to have your phone pointing to his."

Impressive though this may be, most smartphones - be they Nokia, Apple, Palm, BlackBerry or Android - have this function. It is hardly a smartphone's selling point.

And this is differentiation of Google - it wants to expand services to the mobile market, where the growth is much more higher than in desktop computers.

An good point, the mobile phone is expected to be the primary device for internet access in countries where laptops and computers are beyond the financial means of many. Thailand is one such place but, as note here, smartphones remain expensive, only marginally cheaper than laptops/PCs, as yet smartphones do not bridge this gap.

Viroj Assawarungsi stated that the BlackBerry is likely to be in downturn by this year, especially if it offers nothing new. "What's comes quickly can be gone quickly," he said.

As noted earlier BlackBerry has done an excellent job of promoting its device and a consumer desire for smartphones in Thailand, I find it a little difficult to believe it will simply "be gone quickly", particulary given no evidence or argument is provided.

He believes that iPhone will still be the leading player, but Android will be an increasingly attractive alternative.

A current problem with Android is its number of partners in application development is comparatively small, although there is growth potential in this area through the Google platform.

Android has a lot of potential, but still lacks consumer sense, Viroj said.

True Corp CIO Information Convergence Pichit Thanyodom said the market can expect something exciting from Google's Android activities by this year.

True has been studying the applications because there will be different types of Android handsets. 

An interesting response on Android's arrival in Thailand is that of Cnet Asia's Jesada Chandraprasert.

Despite all the hoopla surrounding Android and the phones running it, I don't see it becoming a major player in Thailand's market in the immediate future.

The main reason is that consumers still do not understand what Android is all about. All they see is yet another HTC phone with the same Sense UI. Because the current models that are available do not come with packaged plans like TrueMove's iPhone offerings, most people will not be able to make use of its heavily online-integrated features and services.

Heck, when I was picking up my Tattoo, the salesperson told me I should disable autoconnect so my data charges do not skyrocket because the phone needlessly connects to the Internet.

Without proper PR and marketing to make the features and benefits of Android common knowledge, I'm afraid more Thais will be familiar with the lifecycle of the stripped mosquito than what Android is all about.  

I would add that the smartphone market in Thailand remains a small one, with Nokia, Apple, BlackBerry and others taking occupying it, Android will need to do something more than piggyback the Google brand to break into it in a major way - a competitive price point would be a start.

I don't fancy Android's chances of achieving the "market dominance" which the Bangkok Post article headline suggests.

Mobile Social Networking's Big Potential In Thailand

Here's a piece from the Director Thailand blog on the potential of mobile social networking in Thailand during 2010.

2010 is here and rather than review the year we’d prefer to launch straight into mobile social networking, a technology which could break through and have a major influence on Thailand and its businesses this year.

Just to be clear, we are not advocating that mobile social networking will grip every mobile phone owner across Thailand but, in a world where western markets set digital trends, social networking has the potential emerge as a major force in a similar way to Twitter’s rise over the last 3-6 months.

Key to the development is users’ points of access - in this case smartphones such as the iPhone, BlackBerry, high-end Nokia or others. The demand  for such devices is rapidly growing in Thailand as the media has recently commented.

Here is an excerpt from a recent article in The Nation:

“Thailand's smart-phone market is expected to grow to sales of 400,000 units in 2009, or about 35 per cent more than the 320,000 sold last year, according to market intelligence firm International Data Corporation (IDC) Thailand.

The local smart-phone market still has a lot of room for growth. About 20,000 units are currently being sold per month, while total mobile-phone sales are around 700,000 to 800,000 per month. But the market for traditional mobile phones is showing flat growth, and is likely to fall further.”

To read the rest click here.

Dhamma Embraces Social Media

Technology's Winners & Losers In Thailand

Op-ed from Isriya Paireepairit, Analyst at the Siam Intelligence Unit in the Bangkok Post evaluating technology, the internet and social media in Thailand over 2009.

Few points to make following some of the analysis.

[Filed under technology winners]

Social Media Marketing Thanks to Twitter and @PM - Abhisit and his cabinet, @Thaksinlive, @Suthichai and The Nation focus on hyping up social media, everyone is now aware and social media marketing events are popping up all the time. 2009 was the year of the social media gold rush for the marketing and PR industry. The marketers have just realised the power of social media and believe it to be a magic wand that will reverse the decline in the advertising industry. Next year, reality will hit when they will realise it is not all it was hyped up to be.

I don't see this rush for gold though Twitter and social is beginning to catch on. As it stands, there are too few business making use of Facebook, Twitter et al in Thailand - the hype is likely to occur once business start flocking to the medium next year.

[Filed under technology losers]

A year ago, Hi5 was the social network of Thailand. Then the girls learned of Facebook's quizzes and games. They switched, and the boys followed.

Whilst Hi5 has seen Facebook close the gap it is still important to stress (see here and here) that Hi5 remains Thailand's most popular social network for now.

[Filed under technology losers]

Citizen journalism It was the big thing of 2008 but ultimately it failed to live up to the hype. After a year of blogs and citizen journalism, the Thai media scene is still the same, dominated by only few big papers. I cannot see any local parallels of the Huffington Post or Perez Hilton in this country.