Smartphone market booming
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Smartphone market booming

Despite the political strife, Thailand's smartphone market will enjoy skyrocketing growth this year amid intense competition from mobile operators to upgrade from 2G to 3G services, says the Finnish mobile maker Nokia.

Smartphone users have a growing demand for social media, says Mr Yantana.

Yantana Simavanichkul, managing director of Nokia (Thailand), said the local smartphone market is expected to reach 15 million units this year out of the total mobile phone market of 20 million units this year.

The low-end smartphone priced below 5,000 baht is a key driver of the market as mobile operators are migrating 2G customers to the 3G system while the growth upcountry is high.

The low-end segment will account for 60% of the total smartphone market this year, up from 50% last year. The entry-level smartphone will be priced below 2,600 baht this year, compared to over 3,000 baht last year.

In 2013, smartphone sales reached 9 million units out of 18 million units in the mobile phone market.

"Although consumers are not quite in a mood to spend during the political unrest, the market is likely to continue to grow but only by a single digit," said Mr Yantana.

He said the phablet, which is defined for a big-screen smartphone with a display size of more than 5 inches, is another growing market. The research firm GfK predicted the segment would grow by 30% this year from 600,000 units in 2013.

Nokia has introduced the Lumia 1320, a phablet with 6-inch display at the price of 11,500 baht to cash in on strong growth in this market, especially the replacement market.

"A big-screen smartphone serves users who need a single device that combines smartphone and tablet. It also suits consumers' changing lifestyles with higher demand for social media," Mr Yantana said.

He said Nokia is considering introducing the Lumia 2520 as its first tablet with Windows RT 8.1 operating system in Thailand in the second quarter, initially targeting corporate users.

The company aims to increase its share of the smartphone market this year from 18% last year as Nokia finished in third place.

Meanwhile, Microsoft will complete its worldwide acquisition of Nokia's devices and services business that includes the Lumia Windows smartphone by the end of the first quarter.

In Thailand, Nokia will become one of a business unit under Microsoft and the consolidation will be completed 6-8 months after the global transaction is completed.

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