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20 February 2004 - 3 Hong Kong have released
the long awaited NEC 313 handset this week as
a precursor to its release across 3's other operating
businesses around the globe. While the form factor
of the 313 is similar to early uncompelling Motorola
offerings in the 3 range, the device does at least
boast a more realistic weight of approx 126g,
a distinct improvement over the 190g average weight
of 3’s main devices at present.
So what can we expect from this device when it
comes to Europe on 3? Primarily the handset is
set to be incredibly cheap if its Hong Kong debut
price of approx €100 is anything to go by. By
way of contrast, the Motorola A925 which is set
to be free on most 3 tariffs in Europe, is retailing
for €460 in Hong Kong. While there are some notable
pricing differences between 3's operations in
HK and Europe, how handsets stack up against one
another in Asia will have significant ramifications
for the device’s launch in Europe.
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Depending on the 3's approach to prepay voice and data
tariffing (forecasts of which can be found in the Mako
Analysis research report: 3, Running at a Third of its
Potential, we broadly expect the 313 to launch on 3UK
for between £55 and £75. As with 3's post pay strategy,
if a significant volume of sales cannot be generated
with its initial prepay pricing strategy, heavy discounting
activity is sure to follow.
While the 313 was originally designed to be a stripped
out version of the more exclusive NEC e616 clamshell
device, only a handful of features have actually been
dropped from the low end candy bar shaped 313 device.
The most notable omissions are a lack of Bluetooth functionality,
one less camera and a significantly reduced device memory
allocation.
In summary Mako Analysis is of the opinion that 3 will
struggle at the mid to high end of the prepay market
where fashionable handsets from recognised vendors are
the order of the day. Much like 3's postpay strategy,
the 313 will, in all probability, attract the low ARPU
end of the prepay market that the incumbent mobile operators
will not waste time and money fighting to retain.
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