DUBAI, 1 May 2007 — It is a company you are probably more familiar with if you have lived in Europe. O2 Asia Pacific and Middle East (O2 AP & ME) is a member of Telefonica O2 Europe, a provider of mobile communications services in Europe, with more than 37 million active customers. O2 AP & ME was first established throughout Asia with its headquarters in Singapore and last year the company launched operations in the Middle East.
Now, with the appointment of Aamer Khan as Country Manager (Middle East), O2 AP & ME, the company is planning to increase its activities in the region. Sounds simple, but O2 is trying to sell powerful high-end devices based on the Microsoft Mobile platform to potential customers who, according to Khan, don’t use 80 percent to 90 percent of the features on their mobile phones.
Additionally, O2 is coming late to a market where Nokia has taken a commanding share of the smartphone segment. The smartphone or PDA segment makes up only about two percent to three percent of the mobile market and a sizable chunk of those users are only interested in a smartphone as a status symbol. Maximum functionality is not the concern. Even the corporate market in Saudi Arabia, which should be a natural adopter of a PDA-phone such as the Xda Atom Life, is resistant to its potential, due to after-sales service problems with devices from other vendors.
“We understand the issues in the market. The very first thing I have done since coming onboard is to hire a service manager. O2 is not just about the product. It is about the experience. We need to make ourselves more accessible and easier to deal with,” said Khan. “We came into the Middle East market in May last year through distributors. The distributors have been trying to do whatever they can, but the owner of the brand has to be there to look after its own baby. In Saudi Arabia we are distributing through Samir Technological and Commercial Supplies Co. Ltd. (SAMIR2) and retailing through major retail outlets. Now we will have more of our own direct input as well.”
For 2007, Khan plans to have his team focus on developing the Saudi market and the UAE market before growing the company to other countries in the region. He believes that in the battle of connectivity and the convergence of technologies, the Xda Atom Life is superior to other products on the market and that once this is understood there will be increasing interest in the products O2 is offering.
While currently they are targeting the highest end of the market, eventually other O2 products will be introduced at the mid-market range.
For students and young professionals, SR1,500 is a key price point and currently it is a price point where Windows Mobile devices aren’t competing. Khan commented that this has not gone unnoticed and that O2 and other companies are developing products for this market segment, although they won’t be available immediately. In the meantime, the company will be working hard to make the market aware of just how “smart” a mobile device can be.
“Many people approach a product such at the Xda Atom Life tentatively,” Khan said. “But after spending just an hour focusing on learning how to use the device, they are hooked on it. How do people learn about the potential of these devices? Research has shown that 70 percent to 80 percent of the buying decisions for these products takes place on the shop floor.
That means we need to be educating the sales representatives to understand the functionality of our products. Once people understand the power of the Xda Atom Life, it is very easy to convince them that this is a tool that will help them lead a productive, creative life.”
