Motorola kicks off price war in handsets
Wednesday, November 29, 2006
The world?s second largest phone maker Motorola on Tuesday launched a new phone priced at about Rs 1,600. The strategic pricing is aimed at enhancing its leadership in the sub-Rs 2,000 handset market where it is already the leader in the Rs 14,400 crore entry level segment of the Rs 24,000 crore handsets industry. It competes with Chinese players like Haier and Bird who sell their products starting Rs 1,200 a handset. Nokia, the largest player in the domestic handsets market, offers its entry level series starting at Rs 2,000. LG and Samsung, the other players in the industry, don?t operate in the sub-Rs 2000 range.
The Motorola phone comes bundled with a BSNL or Airtel connection. According to estimates, the entry level (black and white display) phone market constitutes about 60% of Rs 24,000 crore mobile handset sales in India. Nokia?s 1100 and 1600 series are priced at around Rs 2,000 and Rs 2,500.
LG?s entry level phone B 2050 is priced at Rs 2,970 while Samsung?s entry phone is priced at Rs 2,899. Both LG and Samsung don?t offer black and white display phones.
The Motofone is the second low-cost offering from Motorola. Last year, Motorola launched its C115 and C117 series priced at about Rs 1700. Low cost phones account for almost 35% of Motorola India sales.
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