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Taiwan market: Samsung aims to boost handset market share with aggressive pricing

Samsung Electronics plans to launch a total of seven new handsets in the Taiwan market in August with aggressive pricing that aims to boost the company's share in the local market to 20% in the third quarter of this year, according to Jae Hyun Ryu, director of mobile communications unit at Samsung Taiwan.

Samsung also targets to push its market share in Taiwan to 25% in the fourth quarter, Ryu added.

Samsung, currently the number three ranked vendor in the Taiwan handset market, managed to boost substantially its market share from 10.8% in May to 16% in June, trailing Nokia with a 31% share and Sony Ericsson with a 24.8% share, according to data compiled the retail channels in Taiwan.

The seven models will be candy-bar form factor (U808 and L708, 3G Luxe J808), clam-shell (B308), sliding form factor (M628) and two CDMA models (F639 and B289).

Prices of the new models are likely to be 20-30% less expensive than comparative models from rival vendors or Samsung's own comparative models launched previously, Ryu stated.

With the launch of F639 and B289 CDMA handsets, Samsung also aims to maintain its lead in the Taiwan CDMA segment, Ryu said.

Although Samsung currently was still ranked as the largest CDMA handset vendor in the local market, it share has declined to 27-28% recently compared to over 30% on average in the second half of 2007 due to increasing competition from LG Electronics and Nokia, Ryu noted.

Demand for CDMA handsets in the Taiwan market totals about 800,000-900,000 units currently, according to estimates of sources in the retail channel.


Samsung aims to capture 20% of Taiwan's handset market in third quarter.
Photo: Daniel Shen, Digitimes, July 2008

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