Why Nexus One & iPhone Mean Little To Thailand
The world has gone smartphone crazy. Initially it was Apple's iPhone now it is Google's Nexus One that is garnering the attention and praise from media and the public across the world.
There is no doubt that smartphones are changing the way the public communicates today.
Today, using a phone to make a voice call is just one communication option. IM, email, Twitter, Facebook and Skype are now plausible from a smartphone which, in reality, with the processing power of a mini-computer and wireless internet access is way more than a phone.
In Thailand, however, the smartphone revolution is coming at a far slower rate.
This week the country's major mobile phone news, which was somewhat under reported, was Samsung overtaking Nokia's market share to become the Kingdom's leading manufacturer.
The reality of Thailand, and Samsung and Nokia's succcesses, is that smartphones prices are just too high for most of the country.
The cost of a 16 GB iPhone 3GS on the True network is 24,500 THB (a little under £500 or roughly $750), while RIM's BlackBerry devices have faired better with devices available from 15,000 THB (£300, $450)
However these prices, BlackBerry included, are outside of the budget of most Thais can typically afford on a monthly budget which may be anything from 10,000 - 30,000 THB per household per month.
The Nexus One is yet to be released in Thailand but with a Singapore release price of S$802.40 (US$577.31) or (circa) 20,000 THB it is likely to be an expensive option for for Thai consumers.
The proof is in the pudding. Statistics from The Nation show that, despite excellent growth statistics, the smartphone market in Thailand remains small.
"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."
In the UK and US mobile operators offer subsidised phones, usually smartphones, for their customers in exchange to entering a long-term pay monthly contract. The Thai industry does not, at present, subsidise handsets. Though it is one way to a growth of high end device ownership in Thailand subsidisation would likely see costs spread to the consumer in different ways with little saving made, unless one operator would go 'out on a limb' and risk losing money to gain market share.
So while operators and smartphone producers can spend all the time they like talking to the press about "gaining market share", the fact remains that the smartphone industry is dwarfed by 'normal' phones. In reality Apple, Google, RIM and the gang have introduced brilliant technology, but Samsung is the unlikely, less glamorous winner in Thailand.
One example of why Samsung is reigning high is the Candy range - a group of internet ready phones aimed at the teen marketing allowing (limited at this stage) social networking and communications via the web.
The big selling point of the Candy is the 5,990 THB price tag.
Affordability remains the key to success in Thailand's mobile industry.
