Mobile handset prices drop sharply

Major mobile handset companies have announced reduction to the extent of 26 per cent in their prices across all the segments following the reduction of basic customs duty to 5 per cent along with abolition of 4 per cent SAD announced in the Mini-Budget.

An entry level 'Motorola C 350', whose price has dropped by a maximum of 20.73 per cent, would now cost Rs 5,545, while 'Motorola C 300' would now cost Rs 3,995, a reduction of 20.02 per cent, Pankaj Mahindroo, president, Indian Cellular Association said.

The maximum reduction has been in the case of 'Nokia N 6100', whose price has been reduced to Rs 11,370 from Rs 15,499, a drop of 26 per cent.

The other Motorola model whose price has been cut are 'Motorola C 200' and 'C 201' and 'C 266'.

In the case of 'Nokia 1100', the price drop is of 16 per cent at Rs 4,999, while 'Nokia 2100' now costs Rs 5,299 from its earlier price of Rs 5,949.

Price of 'Nokia 3315' has also been slashed by 8 per cent to Rs 3,679.

In the mid-featured model, price of 'Nokia 3530' has been brought down to Rs 6,379 from the earlier Rs 7,049.

A wristwatch designer phone

Reliance IndiaMobile has launched Telson TWC 1150, a wristwatch designer phone with plug-in camera from Telson Electronics, for the first time in India.

A next-generation mobile phone with cybertic design, Telson 1150 can be worn on the wrist and is the world's lightest CDMA2000 1x phone, the company said on Wednesday.

The phone, priced at Rs 23,900, would be offered to customers on outright sale basis. It would initially be launched in Mumbai, Delhi, Chennai, Bangalore and Hyderabad and would be available at Reliance WebWorld and retail outlets in these cities.

Telson TWC 1150 weighs only 98 gms and is equipped with a plug-in high-resolution 330,000 pixel digital camera.

Phone sales to rise

Mahindroo said the price drops would expand the market by about 20 per cent.

He said that the ICA expected mobile phone sales in 2004 to rise to 25.8 million units from 13 million last year. "About 14 million GSM handsets will be sold and 11.8 million CDMA handsets will be sold in 2004," Mahindroo said.

Gopal Jiwarajka, ICA National Secretary said: "In spite of large stock in the pipeline cleared under old duty rates, the industry passed on the benefits immediately to fulfill its commitment to the government. The members have taken a hit of over Rs 20 crore (Rs 200 million) to fulfill their promise."