VietNamNet Bridge – The mobile phone prices have increased sharply in recent days due to the dollar price increases. However, it is quite a surprise that the price increases do not make the purchasing power decrease.

The prices of iPhones, including the products distributed by official importers and the ones sold at private run shops, have increased dramatically.

In Vietnam, big companies distribute products they import to Vietnam through their official representatives, while private shops sell the products which are carried to Vietnam across the borders by foreign travelers or Vietnamese people on their way back from abroad.

In the last two weeks, the price of iPhone4 has increased by one million dong compared to the price in late September. However, despite the sharp price increases, shops still do not have enough products to sell, because the volume of iPhone4 brought from Hong Kong, China and Singapore has been decreasing sharply. Meanwhile, official distributors are selling iPhone 4 in dribs and drabs.

Therefore, not only private run shops, but official distributors have also raised the sale prices. VinaPhone last week adjusted the sale prices of some versions of products the mobile service provider is distributing. The price of iPhone 3GS-8GB (associated with pre-paid iSurf or iSurf0 packages) has soared from 11,099,000 dong to 11,299,000 dong, while the price of iPhone 4-16GB from 13,399,000 dong to 13,699,000 dong, and the price of iPhone 4-32GB from 15,799,000 dong to 16,099,000 dong.

As for the customers who use post-paid iTouch1, 2, 3 packages, the prices have increased from 10,599,000 dong to 10,799,000 dong for iPhone 3GS-8GB, from 12,799,000 dong to 13,099,000 dong for iPhone 4-16GB, and from 14,999,000 dong to 15,299,000 dong for iPhone 4-32GB. As such, the iPhones with pre-paid packages are more expensive by 500,000; 600,000 and 800,000 dong, respectively, than the products with post-paid packages

Besides, the dollar price increases have made the prices of iPhone 3GS-8GB increase by 200,000 dong, iPhone 4 by 300,000 dong. There has been no information about the sale price increases for iPhone products distributed by Viettel. Sources said that this will be the last consignment of import iPhone 3GS in 2010.

Not only the prices of iPhones, but the prices of Nokia brand mobile phones have also increased sharply by 2-5 percent on average. Some common models have seen the prices increase by 20,000-100,000 dong. Nokia 1208, for example, is now selling at 580,000 dong instead of 520,000 dong. Meanwhile, medium class products have seen the prices increase by 130,000-170,000 dong.

The price of Nokia 5800 XpressMusic, for example, has increased by 130,000 dong to 5,480,000 dong.

Hoang, who is in charge of Nokia brand products of a big retail chain, said that the prices of Nokia products have increased significantly mostly because of the dollar appreciation. Meanwhile, Samsung and LG products have not seen sharp price fluctuations because the South Korean manufacturers have production factories in Vietnam which do not bear big influences from the dollar price increases.

This is for the third time so far this year Nokia increases the sale prices of its products.

Despite the sharp price increases, the demand remains very high. IPhone 4 still tops the list of the most favourite smart phones.

However, analysts believe that the short supply would be improved as VinaPhone and Viettel plan to import more than 1000 iPhone 4 to satisfy the increasing demand.

Meanwhile, the distributors of Nokia products have complained that the sales have dropped by 10-20 percent due to the price increases. However, this does not change the current situation that Nokia products are still holding 50 percent of Vietnam’s market share.

Phuong Uyen