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Siemens, Nokia Lead Handset Sales Boom

The domestic mobile handset market more than doubled in 2002, reaching almost 9 million units and a market value exceeding $1.2 billion, a report said last week.

The study by IDC Russia showed that GSM was by far the prevalent standard -- 19 out of every 20 mobile phones sold last year were GSM handsets.

Some trends were more pronounced in Moscow than in the regions, said IDC senior analyst Simon Baker, who authored the report.

"2002 was a year when the differences between the market in the capital and the regions became very apparent," he said.

"In Moscow, mobile handsets have become a fashion accessory for many people and users are changing them more frequently." he said, adding that outside the country's cosmopolitan cities, value rather than vanity drives consumer choices."

In the regions, Baker said, "increasing numbers of first time users are looking for sturdy and reliable models which offer good reception at a modest price."

But as demand rises, so do prices, and IDC has observed that average prices for handsets have been rising at a fast clip, Baker said.

Siemens remained the most popular handset maker on Russia's market, taking a 30-percent share of all sales, while Nokia took second place for a second consecutive year.

The Siemens A35 and the Nokia 3310 ranked as the hottest sellers last year, the report said. The Siemens model is a budget handset, making it especially popular on the regional, more cost-conscious markets.

Meanwhile the Nokia 3310 is a favorite in St. Petersburg, where the phone maker based in nearby Finland holds a larger share of the market than in other parts of the country.

Among other mobile phone makers, Samsung and Alcatel performed well.

IDC forecast that the market would continue to expand in 2003 as the mobile boom reaches deeper into far flung corners of the country.

"Modestly priced models will dominate sales," the report said, but "the top end of the market will remain dynamic, as camera-equipped and multi-media messaging models provide compelling reasons for well-to-do consumers to purchase new phones," Baker said.

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