Home > Stats

Jan 8 2005

Following the apparent repeal of a ban on the import of camera-phones into Saudi Arabia, South Korean handset vendors have begun to predict a major boom in the number of high-end phones sold in the kingdom.

LG expects to sell 200,000 handsets in the kingdom in 2005, up from 60,000 in 2004. Meanwhile, Samsung is also looking to up its allocation to Saudi Arabia this year.

The vendor reportedmarket share of 12%, compared to Nokia's market leading 70%. Around 2m handsets are estimated to have been sold in 2004 and around 3m are forecast by vendors to be sold in 2005, according to the report.

Significance: With camera-phones having proved popular in the kingdom for some time, despite a ban on their import, the vendors are justified in predicting a huge boom in the sale of high-end phones, as the sought-after camera-enabled models move off the black market and into the mainstream at more affordable prices

LG and Samsung are well-established brands in the electronics markets of the Gulf - an asset they are intent on leveraging to challenge the supremacy of Nokia, Siemens and Motorola in the handset market.

LG has even developed a phone specifically designed for Muslims,as a means to increase its profile in the region

With 3G networks getting off the ground in Bahrain and the UAE, and Saudi Arabia opening up to camera-enabled models, the Gulf will be a key target region for all high-end handset manufacturers in 2005.

(From LG)