AHN News Staff
Toronto, Ontario, Canada (AHN) – The battle for a larger share of the $16.8-billion Canadian cellphone market continues to be waged by industry players.
In a bid to make as many hand held units available to consumers, more Canadian supermarkets are including mobile phones on their aisle offerings.
Loblaws announced on Wednesday new partnerships with majority of Canada’s cellphone makers, which would add five new brands to over 500 Loblaw chains across the country. Loblaws has actually been offering cellphones in its retail outlets since 2005.
Shoppers Drug Mart made a similar move in July when it carried Rogers Communications hand held units in its 36 stores across Ottawa. The deal with Shoppers, which sells cosmetics and drugs, was timely for Rogers which ended its dealership with electronics chain The Source after the latter was purchased by Rogers’ rival Bell Canada in early 2009.
Loblaws Vice President of Telecom Services Maria Forlini said the company decided to expand its cellphone offerings because of their belief that the market still has room for growth. Forlini cited Canada’s 70 percent mobile phone penetration rate – which is one of the lowest in the world.
Forlini said with 13 million consumers shopping at Loblaws weekly, the supermarket chain could be a major retailer of cellphones in Canada.
Even new telecom companies such as Wind Mobile and Public Mobile have entered into deals with supermarkets to make their products within reach of more consumers in an attempt to have a larger share of the cellphone market.
According to Bank of America Merrill Lynch estimates, cellphone subscriber growth would continue to expand at an annual rate of 7.5 percent. That would translate into at least 3.9 million new clients.
The growth is also expected for the more expensive smartphone market, particularly in the U.S. Technology trends company ComScore reported on Wednesday that Research in Motion’s BlackBerry is still the top smartphone in the U.S. with a 37.6 percent market share, followed by Apple’s iPhone with 24.2 percent.
On third spot were phones that use Android operating systems, which includes Samsung, LG and Motorola.
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