Market Intelligence Center (MIC,資訊市場情報中心), an Information and Communication Technologies industry and market research firm, forecasts that next year local telecom operators will need to go beyond providing simple fixed cellphone plans and customize plans for consumer needs in addition to offering various electronic goods and perks in order to attract new users and retain old ones.
Strategies of “bundle plans,” “NT$0 promotions” and “plan customization” implemented in the second half of this year to gain precious market share in the premium user segment will no longer be sufficient, the Taipei-based research group said in a report yesterday.
“Bundle plans” are packages that combine cellphone devices with operator plans, whereas “NT$0 promotions” are no-money-down devices, in lieu of higher monthly fees. “Plan customization” means more flexible plans.
MIC warned that currently the island’s data services currently accounts for roughly only 10 percent of the its total mobile revenues, hence when existing users renew their contracts, operators need to bear in mind that not every user will be willing to shell out additional money for a new phone or jump immediately onto its 3G network.
Therefore, offering other consumer electronics such as digital cameras, Sony Corp’s PlayStation 3, or Nintendo Co’s Wii might be a more attractive alternative to these users, as they renew their plans, MIC said.
With the furor created by Chunghuwa Telecom Co’s (中華電信) Apple Inc iPhones release in December, Research In Motion Ltd’s upcoming Storm release is bound to add fuel to an existing high-end touchscreen smartphone competition, MIC said.
The research house predicts smartphone battle will be in full rage during Chinese Lunar Year on Jan. 26, as local telecom operators fight to increase data plan revenues by rolling out new high-end models.
Carriers are typically more willing to provide large subsidies on high-end phones in order to increase its high margin 3G data services sales. Despite the focus on obtaining rights to sell brand name smartphones in Taiwan, MIC said that operators need to work on providing differentiating proprietary digital services as well.
As mobile 3G penetration increases, netbooks and other mobile Internet devices (MID) will add a stable revenue stream to carriers, therefore MIC expects to see more intense collaboration between mobile Internet devices (MID) manufacturers and operators this year.
Conversely 2G cellphones and simple cellphone plans are becoming carriers’ low margin businesses and consumers should expect further decreases in subsidies for these 2G devices, MIC said.
FALLING BEHIND: Samsung shares have declined more than 20 percent this year, as the world’s largest chipmaker struggles in key markets and plays catch-up to rival SK Hynix Samsung Electronics Co is laying off workers in Southeast Asia, Australia and New Zealand as part of a plan to reduce its global headcount by thousands of jobs, sources familiar with the situation said. The layoffs could affect about 10 percent of its workforces in those markets, although the numbers for each subsidiary might vary, said one of the sources, who asked not to be named because the matter is private. Job cuts are planned for other overseas subsidiaries and could reach 10 percent in certain markets, the source said. The South Korean company has about 147,000 in staff overseas, more than half
Taipei is today suspending its US$2.5 trillion stock market as Super Typhoon Krathon approaches Taiwan with strong winds and heavy rain. The nation is not conducting securities, currency or fixed-income trading, statements from its stock and currency exchanges said. Yesterday, schools and offices were closed in several cities and counties in southern and eastern Taiwan, including in the key industrial port city of Kaohsiung. Taiwan, which started canceling flights, ship sailings and some train services earlier this week, has wind and rain advisories in place for much of the island. It regularly experiences typhoons, and in July shut offices and schools as
TECH PARTNERSHIP: The deal with Arizona-based Amkor would provide TSMC with advanced packing and test capacities, a requirement to serve US customers Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) is collaborating with Amkor Technology Inc to provide local advanced packaging and test capacities in Arizona to address customer requirements for geographical flexibility in chip manufacturing. As part of the agreement, TSMC, the world’s biggest contract chipmaker, would contract turnkey advanced packaging and test services from Amkor at their planned facility in Peoria, Arizona, a joint statement released yesterday said. TSMC would leverage these services to support its customers, particularly those using TSMC’s advanced wafer fabrication facilities in Phoenix, Arizona, it said. The companies would jointly define the specific packaging technologies, such as TSMC’s Integrated
An Indian factory producing iPhone components resumed work yesterday after a fire that halted production — the third blaze to disrupt Apple Inc’s local supply chain since the start of last year. Local industrial behemoth Tata Group’s plant in Tamil Nadu, which was shut down by the unexplained fire on Saturday, is a key linchpin of Apple’s nascent supply chain in the country. A spokesperson for subsidiary Tata Electronics Pvt yesterday said that the company would restart work in “many areas of the facility today.” “We’ve been working diligently since Saturday to support our team and to identify the cause of the fire,”