VietNamNet Bridge – This year has witnessed the so-called “price revolution”: the price of a handset drops by VND100-500,000/unit just one month after the model is marketed.

Several hundred choices for customers

Cellular phones under the world’s most famous brand names all are present in Vietnam. Nokia, Samsung, Motorola and Siemens have introduced several series of phones in Vietnam’s market. Nokia, for example, has launched 96 models of cellular phones onto the market and is planning to market another seven models in early 2007. BenQ-Siemens have also introduced 30 models, while Sony-Ericsson has 35 models in Vietnam. Motorola, which has had 30 series of products, is going to market six others in one or two months.

Vietnamese customers now have many choices when they decide to buy cellular phones. A saleswoman at the Mobile Plaza on Ba Trieu street in Hanoi said that any cellular phone model could be out of date just one or two months after it was launched onto the market. Mobile Plaza itself introduces two or three new models every month.

Nguyen Thi Bich Phuong, Marketing Director of Nokia Vietnam, said that Nokia introduces new products every one or two months which gives more choices to customers, and so do other handset producers.

According to Nguyen Thi Hoa, the owner of two mobile phone shops in Hang Bong and Dien Bien Phu streets in Hanoi, cellular phones have become cheaper and cheaper, and this brings more opportunities to customers. Two or three years ago, with VND2-3mil, one could only buy a phone with regular functions, while with the sum of money now, he can buy a phone with many specific functions like recording or taking pictures.

Meanwhile, in the market appear mobile phones that are selling dirt-cheap, and the prices of which are just a half of the retail prices announced by producers, and they are illegally imported into Vietnam.

Price decreases indispensable

Ms Hoa said that in November and December, cellular phone prices decreased dramatically by VND100-500,000/unit. She said that the price decrease is inevitable since new models are born every day, making other models obsolete.

“The life of a cellular phone model is very short nowadays,” she said.

Meanwhile, Nguyen Thi Trang Nhung, Marketing Director of Motorola Vietnam, said that there were two factors leading to the sharp price decrease. First, after launching new products to the market, the producers have to have suitable price policies to attract more customers. Second, sales agents, who can get commissions from sales, always try to offer discounts or give gifts in order to raise their sales.

Meanwhile, in the market appear mobile phones that are selling at prices just equivalent to a half of the retail prices announced by producers.

(Source: Lao dong)