Handset market updates

Euroset expanding into India

According to a local newspaper, The Economic Times, Russia's largest mobile phone retail chain Euroset plans to expand its operations into the Indian market. In 2007-2008, Euroset has plans to open as much as 5'500 retail outlets throughout India. Euroset's President Eldar Razroyev expressed that they will be developing the project together with some local companies: "We are considering the legal aspects of entering the market. Nonresidents are not allowed to own more than a 25% stake in a local company"

Euroset operates over 4'400 outlets in Russia, Belarus, Estonia, Kazakhstan, Kyrgyzstan Lithuania, Moldova, Ukraine and Uzbekistan

The pace of India's mobile phone market growth is accelerating and the country is on track to surpass Russia and the U.S. in total subscribers. This means that india will soon become the number 2 mobile phone market after China. Euroset is set for tremendous growth. Unfortunately, you cannot invest in Euroset; the company is privately held evenly owned by its two founders!

Motorola to take over Sagem?

Motorola is apparently looking to buy Sagem (owned by the French group Safran). Ron Garriques, head of Motorola's mobile devices told Le Figaro that Motorola is very interested in acquiring Sagem.

He said: "We have a serious interest in Sagem. It's an option for an industry that's in the middle of consolidation... I don't know yet whether we'll get it."

Motorola's main interest seems to be the Sagem staff, as he went on to explain: "When I envisage an acquisition, the teams are the determining factor. The brand, the technology aren't the main elements that matter to me. For me, like for my competitors, the management team at Sagem is perhaps one of the most respected in the sector,"

With the recent turmoil and consolidation phase within the industry (remember Benq Siemens), Sagem itself has had a series of financial losses, this may be very good news for SAFRAN (owner of Sagem). It would be interesting to see whether the buyer, if indeed this is Motorola, will keep the brand alive or just swallow up the operation and management team.