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Belteshazzar ( Date: 26-Aug-2011 20:08) Posted:
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Corporate Digest| 26 August 2011
S i2i: Leading The Switch Revolution To A Digital Lifestyle
| By Xavier Lim and Louis Lee |
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In the 21st century that we live in, it is not uncommon for people to be glued to their mobile devices as they surf their favourite websites, check their stocks, or even log in to any messenger services to chat with their friends. With the world embracing a digitally connected lifestyle, we have officially moved into the era of a new kind of internet, Mobile Internet.
Moving its chess pieces with absolute finesse and careful planning, S i2i, formerly known as Spice i2i has been making significant progress in targeting key markets around the world to tap on and provide the service of “Mobile Internet” at an affordable price. Its expansion footprints marked by its “i2i belt” (Ivory Coast to Indonesia) sees S i2i’s presence in a total of 41 countries such as Indonesia, United Arab Emirates, Thailand and Singapore.
Silver Lining In Developing Markets
“The world that we live in right now is actually separated into two namely the developed world and the developing world,” remarked Dr. Bhupendra Kumar Modi, Chairman of S i2i, during an exclusive interview with Shares Investment (Singapore).
Dr. Modi further explained that the developed countries, no doubt being fast and well-connected, are very limited by the heavy problems surrounding it. Examples like the U.S. downgrade and Eurozone crisis are putting a serious bottleneck which limits growth potential of developed countries.
“Developing countries are, however, on the different side of the pitch. Although it’s not as fast or well-connected as compared to the developed countries, the growth potential, especially that of internet usage, is one that is limitless. This is why we chose to expand S i2i’s footprints in these developing markets,” Dr. Modi said.
A compelling issue many of such developing countries are facing pertaining to setting up internet infrastructures is the high costs involved in the installation of the fibre wires. Therefore youths, whom are generally the targeted crowd for the internet wave to kick start might not even have the capability to own a PC at home, let alone having internet access. However, Dr. Modi does not see this as a bottleneck and views this as a disguised opportunity instead.
“It is not uncommon for youths in the developing countries to have their first exposure to the internet via mobile phones, because the costs of owning a PC (excluding the infrastructure costs of having good enough fibre wires to support the usage) clearly outweigh the cost of owning a mobile phone that could do the exact same thing,” Dr. Modi pointed out.
Elaborating further, Dr. Modi commented that the price of owning a computer, exclusive of internet data is about $200-$400, while a mobile phone that supports basic internet data usage of 2.5-2.75G could very well cost only $40-$50.
“This stark difference will evidently make mobile internet the more economical choice and also eradicate the need to migrate users who are accessing the internet via their computers to their mobile phones.” said Dr. Modi confidently.
Dr. Modi pledges .3 million donation to the Lee Kuan Yew School of Public Policy
Developing Low Cost Applications For The Masses
As developing markets are in the infancy stage pertaining to mobile internet, most phones run on 2.5-2.75G instead of the commonly seen 3G here. Thus, applications which are commonly supported by 3G phones may not be supported by the lower tiered bandwidth phones at all.
Having envisaged this issue beforehand, S i2i has mitigated this by working closely with Chinese developers to pre-load 50 most commonly used applications ranging from banking, shopping to movies onto its mobile handsets.
“We want to be on the side of users, why limit them to only 3G apps when the infrastructure for 3G is obviously not ready in these developing markets yet?” explained Dr. Modi.
Having the same foresight, developers of said applications are seeing the same potential in developing markets and are flocking to S i2i, effectively putting S i2i in a position where it could not only select the best application for its mobile handsets, but work on concessionary deals like profit sharing.
Sourcing Local Champions
Adhering to the basic rule of “When in Rome, be like the Romans”, S i2i has been successful in establishing a foothold in these developing markets by acquiring each country’s local leading brand, or in their coined terms, local champions. Some local champions S i2i have acquired are ‘Wellcom’ in Thailand and the Greater Mekong Sub-region, ‘CSL’ in Malaysia and ‘Nexian’ in Indonesia.
The recent acquisition of ‘Nexian’ from Affinity Group is one that is of strategic importance. The ‘Nexian’ brand name is one that is loudly heard in Indonesia. It has the second largest market share with around 25% of mobile phones supplied in Indonesia, and the said acquisition will allow S i2i to leverage upon Nexian’s substantial presence in Indonesia and penetrate the mobile internet market there.
While preserving the brand equity built up in those emerging markets, S i2i is also looking to combine all its acquisitions under one umbrella S brand. Meaning consumers in the region will soon be able to get their hands on S-Nexian, S-CSL and S-Wellcom branded phones as they make the switch to the mobile internet. S i2i also plans to launch its range of phones into the Singapore market shortly. This will allow S i2i to greater recognise the synergistic benefits of its acquisitions through an expanded retail reach and lower procurement costs from integrating its supply chain.
“Although Nokia, S i2i’s biggest competitor, has a comparatively large market share of approximately 40 percent in Indonesia, S i2i is still reaching out to its target audience without much resistance,” commented Dr. Modi.
He explained that this is because Nokia is now in the middle of a war with the big boys like Blackberry, Apple, HTC and Samsung to claw back market share in the developed markets.
“With the big players and Nokia fighting so fiercely, Nokia doesn’t really have much room to regard S i2i as an immediate threat to their market share, and this is also one of the reasons why our progress has been without much hiccups.” Dr. Modi stressed.
S i2i has also taken decisive steps to build up its technological capabilities, having entered into a strategic partnership with Mediatek Inc. through its sister company “Spice Digital”. Mediatek is a leading fabless semiconductor company for wireless communications and digital multimedia solutions with sales of US$3.9 billion in FY2010. The partnership allows S i2i to tap onto Mediatek’s chipset technologies which are currently used by top mobile phone brands across the globe.
On top of that, it is only a matter of time before the entire world moves in full gear into the era of mobile internet and ensuing digital lifestyle. Coupling this with the fact that developing markets, which i2i belt mostly consists of, will eventually match up to the same level of playing field of developed markets, S i2i looks set to lead the switch to the digital lifestyle comfortably.
Nexian Expects to Sell 3 Million Phones in Second Half
Since
it started operating in 2006, Nexian has sold 10 million cell phones,
and about 95 percent of them are QWERTY phones. (IFT/STANLIE)
JAKARTA (IFT) - PT Metrotech Jaya Community, vendor of local brand, Nexian, aims to sell of 3 million units of mobile phones in the second half of this year. Since it started operating in 2006, the company has sold 10 million cell phones, and about 95 percent of them are QWERTY phones.
Andy Jobs, Chief Marketing Officer of Nexian, said that the company uses multiple marketing strategies to meet the target. First, the company will add more product models, applications, features, and data content.
This year, Nexian will focus on selling touch screen phones. The company aims for this year’s mobile phone portfolio to consist of 75 percent touch screen phones.
Last week, Nexian launched the touch-screen Nexian Pad NX-G311 at affordable prices, marketed to the youth segment. The company is targeting to sell 400 thousand units of the product by the end of the year.
" In the second half, we will market a minimum of six Android touch-screen phones with affordable prices," Andy said.
Another marketing strategy is to enter the community. At the beginning of August, Nexian started marketing the Nexian Hikmah for the Muslim community. The company expects to sell 300 thousand units of Nexian Hikmah during Ramadan.
Nexian’s sales distribution is supported by Selular Shop, Nexian Shop and a number of modern channels available all over Indonesia. Nexian is currently listed as a major local brand with 40 percent market share.
Nexian’s competitor Nexian, PT TiPhone Mobile Indonesia, focuses on marketing phones with dual SIM (Subscriber Identity Module) cards. David Tirtajaya, Director of Retail at TiPhone, targets to sell 200 thousand units of its products per month this year.
According to David, TiPhone has 5 percent share in the local brand market. TiPhone Mobile distributes its products through Telesindo Shop, which has more than 500 outlets.
According to the IFT Research Department, the retail industry of cellular phone this year has good potential judging from the increasing shipment of mobile phones to Indonesia. Phone vendors are also continuing to market smartphones with a variety of Android operating system.
International Data Corporation (IDC) Indonesia reported mobile phone shipments grew 13.5 percent this year to 37 million units from 32 million units last year.
Smartphones has 17 percent share of the total projected shipment or about 6.3 million units. Low-end phones continue to dominate the market. (*)
Android Makers Back Google-Motorola Deal |
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Android phone makers welcomed Google's acquisition of Motorola,
saying the move would bolster protection of the platform as the it
comes under fire in escalating patent infringement lawsuits.
The Mountain View, Calif.-based company characterized the acquisition as a move to strengthen the overall Android ecosystem, especially as rivals like Apple and Microsoft continue to attack the OS through a rising number of patent infringement lawsuits. " Our acquisition of Motorola will increase competition by strengthening Google's patent portfolio, which will enable us to better protect Android from anti-competitive threats from Microsoft, Apple and other companies," said Larry Page, Google CEO, on Google's blog. Other phone makers who use and rely on Android for their smartphones also see the acquisition in the same way, and may likely benefit from Google's access to Motorola's patents as their own legal troubles over Android's vulnerabilities in patent lawsuits proceed. " We welcome today's news, which demonstrates Google's deep commitment to defending Android, its partners, and the ecosystem," said J.K. Shin, president of Samsung's mobile division. Samsung is currently embroiled in a web of legal action initiated by Apple this year, alleging the Korean electronics giant copied the design and technology of iOS products. " We welcome the news of today's acquisition, which demonstrates that Google is deeply committed to defending Android, its partners, and the entire ecosystem," HTC CEO Peter Chou said. HTC is also engaged with Apple in a set of patent infringement claims lodged by Apple with the International Trade Commission. Other Android phone makers also added their approval to the chorus. " I welcome Google's commitment to defending Android and its partners," said Sony Ericsson president and CEO Bert Nordberg. Sony has been ramping up its Android handsets this year with its growing Xperia line, and is hoping for a turnaround of its mobile division based on the increasing strength of Google's OS in the marketplace. " We welcome Google's commitment to defending Android and its partners," LG's president and CEO Jong-Seok Park said. LG began its first steps at a turnaround last year based on Android devices as well, and has attempted to distinguish itself by adding 3D capabilities to its handsets. The deal to acquire Motorola is a major gesture by Google to help defend its phone makers against Apple and other rivals, and the access to a new set of patents will help armor the OS in its legal challenges. The long-term effects of the deal remain more nebulous, however, especially as Google looks to exert more control over the Android experience. The company has begun dealing with the issues of fragmentation in OS and is reportedly working with phone makers more closely to create a more consistent Android experience across the board. Its move into hardware may allow it more control over a popular Android device maker, which may affect Motorola rivals in unanticipated ways. |
Google Buys Motorola for $12.5 Billion, Moves Into Hardware |
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Google
announced it will buy Motorola Mobility for $12.5 billion, in a move
that will give the Internet giant a presence in smartphone hardware and
bring it thousands of new patents.
expressing interest in developing for Microsoft's Windows Phone platform. Google intends to run Motorola as a separate company that will continue to develop Android devices. Android will remain an open platform, allowing other companies to develop devices that run the platform. But despite Android keeping its status as an open platform, Google's new purchase makes the company a bit more like Apple. Until now, Google has been content to let other companies develop mobile phone hardware, while the search giant focuses solely on developing software. Rival Apple, however, crafts both its own software and hardware, ensuring more control over its devices. This strategy has allowed Apple to profit doubly on the devices it sells and stay competitive with Google, despite not having nearly as many handsets on the market. Google looks to be setting itself up to benefit from the same type of situation by buying Motorola. But Google's purchase may give the company more than the ability to develop hardware for its software. Motorola also comes with thousands of patents, which are increasingly valuable as companies sue their competitors seeking a court-ordered ban on products or the implementation of licensing fees. Motorola's patents makes a nice consolation prize for Google, which recently lost a bid for the Nortel patent portfolio to a group of competitors led by Microsoft and Apple. Google's Motorola purchase is a major change for a company that until now put its focus entirely on smartphone software rather than hardware. If the deal is finalized, it will likely shake up the landscape of the smartphone world, but the exact ramifications of Google's acquisition of a major phone maker will take time to play out. |
Nokia 500 Goes Back to Roots |
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Nokia
today announced the Nokia 500 handset will ship to North America in the
third quarter, as the company looks to spur business before the launch
of its Windows-based phones.
The phone has a small and light design and comes in white and black with a removable back cover that allows users to customize the color. The Finnish phone maker used Symbian as its primary platform for years. But in February, Nokia dumped the platform in favor of a partnership with Microsoft. As Nokia gets closer to releasing its first Windows-based phones, the company is using phones like the 500 to bridge the gap. Nokia continues to sell Symbian-based devices as it weathers the transition to Windows, when it joins with Microsoft in an attempt to spur declining sales. The company, which lost more than a half a billion dollars from April to June, also relinquished its title to Apple, as the number-one smartphone maker in the world. Nokia and Microsoft are relying on their partnership to regain a piece of the smartphone market. Nokia hopes the freshness of Windows will attract new customers, while Microsoft is hoping Nokia can ship out devices all over the world. While the 500's hardware may be impressive for a mid-range smartphone, the Symbian software it runs is no longer a focus, which may affect its prospects in the market. Microsoft and Nokia today announced plans to unveil its first Windows-based smartphone on August 17. The phone is codenamed " Sea Ray," and looks almost identical to Nokia's N9 device. Future Windows phones could use the same hardware as Nokia 500 but nothing is known yet, and those who want to take advantage of the design and price of the Nokia 500 will have to use the Symbian OS for now. |
Nokia, Microsoft to Unveil Windows Phone on August 17 |
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Nokia
and Microsoft today sent out joint invitations for a " party" that is
expected to introduce the first Nokia-Windows phone on August 17.
Nokia has yet to officially unveil the new portfolio of Windows products, but last month, its first Windows phone, codenamed " Sea Ray," leaked, highlighting a polycarbonate case, a Gorilla glass display and one more hardware button than its flagship N9. The new Nokia Windows phones are expected to be released before 2012. A reveal of a Nokia Windows phone at the special event would mark the official beginning of Nokia's push to regain its footing in the smartphone market. The phone maker has lost ground in the highly-competitive field, lagging behind rivals as consumers shifted to app-centric touch screen devices. Since struggling to win consumers amid the rise of Apple and Google, Nokia and Microsoft teamed up in February in an effort to claw back into the fiercely-competitive smartphone market. The strategic partnership will feature Microsoft's mobile OS on Nokia devices worldwide, addressing Nokia's software failings while boosting Microsoft's presence. The partnership is not without risk, however. Though generally well-reviewed, Windows Phone still lags behind its competitors, and still lacks apps in comparison with the robust offerings on iOS and Android. However, Microsoft has been hard at work at a significant update to its platform, dubbed " Mango," and has taken steps to boost app development. As the two regroup, Apple and Google are gaining momentum, and dominating the worldwide smartphone market. Google is set to solidify its growing dominance with a slate of new releases by several major phone makers worldwide, giving consumers a wide range of Android devices to choose from. Apple will release its next-generation iPhone 5 handset this fall as well, boosting its momentum in the smartphone market. As new Nokia Windows phone take their bow, they face a formidable set of rivals as they vie for consumer dollars. |
This is higher than our local bank
The Taiwanese company made more than $600 million in profits on just over $4 billion worth of revenue from April to June.
Belteshazzar ( Date: 02-Aug-2011 08:25) Posted:
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