Models display the Huawei U8220 Android smart phone during its launch at a Nairobi hotel. Photo/FREDRICK ONYANGO
Chinese telecoms firm Huawei has introduced its smart phone brand in Kenya, aiming for a piece of the rapidly growing top end of the mobile phone market currently dominated by global giants Apple, Nokia and Samsung.
The U8220 phone, powered by Google’s Android operating system for high speed internet connection, debuts in Kenya under a partnership with Safaricom, the local media giant with more than 12 million subscribers.
The partnership with Huawei offers Safaricom a competitively priced but highly loaded smart phone with which to reply to Apple’s iPhone that is exclusively being sold in the country by rival Telkom Kenya.
Safaricom has in recent months been waging an aggressive campaign to grow its data business through the marketing of mobile phone-based and wireless internet access from its 3G network, making the Huawei phone a critical arsenal in its war plan.
“There is need for more affordable gadgets to increase internet use in this market. Our choice is informed by the relatively low entry price - we seek to push the cost of obtaining a smart device to around Sh10,000,” said Mr Michael Joseph, Safaricom CEO.
The U8220 phone, which is targeted at the market segment currently occupied by iPhone and BlackBerry, follows the debut of the iPhone, Samsung Omnia and BlackBerry.
It is expected to spur competition and renew price wars in a market segment that is growing at the highest rate as Kenyan consumers who have mainly used their phones for voice calls and short text messages graduate to the next level.
Radoslaw Kedzia, Huawei’s chief operating officer, said the Chinese firm would use its heavy muscles to develop cheaper smart phones for the price sensitive Kenyan market.
“This is the first such launch in Africa, and reflects our long term investment in developing high tech devices,” he said.
Early this year, Telkom Kenya won an exclusive right to distribute the iPhone range of smart phones in Kenya – riding on a global licensing deal between its parent Orange of France and Apple.
Both Zain and Safaricom offer BlackBerry services, which are mainly targeted at corporate customers.
Huawei U8220 and VF845 models have been positioned as mass market gadgets that will initially retail at an offer price of Sh28,000 and Sh17,000 respectively.
The iPhone 3Gs retails for Sh45,000, while a BlackBerry Bold model is priced at Sh65,000.
Like the iPhone, the Huawei models feature touch-screens and allow users to synchronise documents using office tools, Google products as well as access to the internet.
The Huawei Android phones come with a sleek chrome cover, Wi-Fi, and GPS capabilities, a 3.5 inch HVGA touch screen —the largest for Android phones— and features an innovative canvas profile that enables users to switch freely between six default extended screens.
The Huawei U8220 weighs the same as an iPhone 3GS, features a 3.5 inch TFT Capacitive Touch-screen and has a 3.2 mega pixel camera.
In a shift from the BlackBerry models currently in the market, Huawei devices allow free access to email features, eliminating another cost centre that has weighed down the BlackBerry’s popularity.
Market watchers say pricing remains a key determinant of consumers’ buying decisions in a developing market such as Kenya’s and the presence of a cheaper version of any good or service tends to upset the demand and supply dynamics in a way that supports or hurts the sales.
Speaking during the launch, the Information and Communication PS, Mr Bitange Ndemo, challenged mobile service providers to pass on cost savings to consumers.
“We are in the process of developing local digital content that will encourage more Kenyans to access the internet but this can only be achieved if service providers lower the internet costs to make it affordable to the average Kenyan,” he said.
PAYE Tax Calculator
Note: The results are not exact but very close to the actual.
