Cheaper iPhones on the way
Tue, Nov 10, 2009
my paper
WITH the last homegrown telco StarHub now on the iPhone bandwagon – it will launch the gadget by year-end – consumers will get to enjoy even more competitive prices.
Industry experts whom my paper spoke to yesterday agreed that all three home-grown telcos would be spurred on to roll out promotions to draw customers, which would probably translate into cheaper deals.
Market-research firm Gfk’s regional senior account manager, Mr Kevin Huang, said: “With the (wider) availability of the iPhone…it is inevitable that there will be a downward pressure on the final retail price of the handset.”
Each telco will not be able to “rest on its laurels and will need to concoct packages to hold consumers’ attention”, he added.
This could mean more creative options in terms of price plans and bundled packages, experts said. For example, exclusive and purpose-driven customised applications could be preloaded on the phone.
This, however, may not bode well for non-iPhone supporters shopping for other brands.
Mr Aloysius Choong, research manager at technologyanalyst firm IDC Asia-Pacific, explained: “StarHub and M1 now have a lower need to subsidise rival products to compete against the iPhone.
“Not so good news, perhaps, if you’re looking for a Nokia, HTC or Samsung smartphone.”
But joining the market this late in the game will probably not do StarHub or M1 any favours, said industry experts.
Said Mr Marc Einstein, an industry manager at market-analysis firm Frost & Sullivan: “Sing-Tel has a significant headstart in the market, so most of the early adopters would have already been locked into a contract with them.
“I don’t think StarHub and M1 will get too much of a windfall.”
Still, giving subscribers the option of owning the iPhone will save telcos from potentially losing existing ones.
Mr Foong King Yew, research director of market-research firm Gartner, said: “The strategic aim is not one of attracting a large base of new customers from their competitor.
Those who truly desire an iPhone would have got one already.”
Apple is reportedly already working on the next version of the smartphone, which will be usable anywhere in the world, to be released in the third quarter of next year.
