Taiwan's HTC tests Myanmar smartphone market

Taiwan's HTC Corp. is taking its smartphones to Myanmar, joining an expanding list of foreign companies seeking a foothold in one of Asia's last investment frontiers.

HTC is looking to tap new markets in the face of heavy competition from rival handset makers Samsung Electronics Co., Apple Inc. and low-cost Chinese manufacturers ZTE Corp. and Huawei Technologies Co. Its foray into Myanmar could help drive the company's growth in the medium term. Companies like Coca-Cola Co., MasterCard Inc., and General Electric Co. have already expressed interest in the country as it continues to open up its economy.


"Myanmar is opening up and opportunities are everywhere," HTC Chief Executive Peter Chou, who was born and raised in Myanmar, told The Wall Street Journal in an interview.

Myanmar has the lowest mobile penetration rate in all of Asia. Consultancy Thura Swiss Ltd. estimates that around three million people, or only 5% of Myanmar's population, are using handsets, most of which are low-end phones. There are only two carriers in the country: Myanmar Posts & Telecommunications and smaller rival Yatanarpon Teleport Co.

That picture could change soon. Nomura Securities said that Myanmar's telecom regulator is drafting a new law that will grant up to five more licenses to telecom operators, and possibly let in foreign investors for the first time. Myanmar's government has also been cutting prices of mobile SIM cards since early 2012, to US$140 from US$500, to encourage mobile usage and meet the official target of 50% for wireless penetration by 2015, according to Thura Swiss.

Analysts have pointed to the high price of SIM cards as the main factor behind the low mobile usage rate. Thura Swiss said if the additional licenses are eventually issued, competition may lead carriers to issue free SIM cards and that would create more demand for mobile phones.

HTC's entry into Myanmar is a medium-term project, Mr. Chou said.

"The mobile market there is crowded with low-cost devices. We will take it slowly, so such foray won't help HTC's overall shipments in the short term," he said. To further attract local buyers, HTC has developed a new input system for Burmese characters, he added.

Singapore-based KMD Co., HTC's retailer and dealer in Myanmar, said six handset models will be on sale starting Monday. The phones range from high-end units such as the One X+, One X and Butterfly, to mid- to low-end models like Desire X, Desire VC and Desire V. Thura Swiss said low-cost phones from Huawei and Samsung are the top sellers in Myanmar, followed by Sony handsets.

Both HTC and KMD declined to disclose pricing details for the phones.

source: Market Watch
http://www.marketwatch.com/story/taiwans-htc-tests-myanmar-smartphone-market-2013-01-13