SME Sdn Bhd, the world’s second largest cell phone distributing company, has decided to expand its market share in the Malaysian mobile market by introducing low-price handsets.
The local press on May 23, 2007 reported as per the news published on English People, Samsung Malaysia Electronics (SME) Sdn Bhd (the world’s second largest cell phone distributing company), which manufactures electronic products, anticipates to increase its market share in the domestic cell phone market to 30% by this year.
The domestic unit of the South Korean firm, at present, occupies a share of 20% in the cell phone market in Malaysia. It has now targeted to increase its share to earn US$ 350 Million as revenue from the cell phone industry in the country.
The CEO and the managing director of Samsung Malaysia electronics, Min Yong Ho, said “We hope to sell some 5,000 units of mobile phones in one month from each model. Demand for hand phones in Malaysia is expected to hit some 3.5 million units this year”, as per the news published on Business Times.
In order to increase its market share in the coming years, Samsung Malaysia electronics is launching low-price cell phones. This will help it gain a competitive edge over its rivals and at the same time, increase its business also. Park Sang Jin, South Korean company's president and CEO of its Southeast Asia and Oceania business unit, said in news published on TheStarOnline "Low-cost phones, at the entry level, will let people get used to our interface so that when they upgrade, they will stick to the brand based on familiarity".
The mobile market of Malaysia has seen its growth graph rising for the last some years and the country’s mobile penetration rate of over 73% (out of 25 Million populace) is the second highest in Southeast Asia after Singapore. The development of Malaysia’s telecom sector will be fueled by the growing interest of consumers towards high-speed broadband Internet services. With Malaysian market growing at a brisk pace, the subscribers are showing keen interest in high-bandwidth services like mobiles.
As per a research analyst at RNCOS, “The subscriber base of mobile phones in Malaysia continues its growth with a penetration rate of approximately 45% in a nation with 25 Million people. The awarding of 3G licenses has initiated the era of next generation mobiles in the country. Samsung had already written the success story after it introduced the smallest 3G handset of the world in the Malaysian 3G mobile market.
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