More Suppliers To Enter 2.4GHz Cordless In 2000
By Martha McDonald -- TWICE, 3/13/2000
More cordless phone suppliers will enter the 2.4GHz market later this year to create excitement among consumers interested in new technology and boost average retail prices as 900MHz prices continue to slide.
Conair, VTech, VTech-owned AT&T and TT Systems, which markets IBM phones, will enter the 2.4GHz market this year, and companies such as Panasonic will expand their selection.
Sony, on the other hand, is launching an extensive cordless line but is doggedly concentrating on 900MHz. "We re looking into 2.4GHz," said senior marketing manager Les Burger, "but we have no specific plans for it. There are no range advantages for 2.4GHz, but there are other advantages, such as data capability and the ability to add multiple handsets. At this point, we can make high-power 900MHz phones that are less costly for the consumer."
Whatever the relative advantages of 2.4GHz and 900MHz technology, sales of 2.4GHz models are picking up steam as the selection grows.
Peter Arato, account manager at NPD Intelect's Market Tracking Service, puts cordless unit growth at 24% for the past 52 weeks through January 2000. He also noted that 2.4GHz's share grew from 2% of cordless unit sales in January 1999 to 4.5% now. More than 20 2.4GHz models were introduced last year, compared to only two in 1998.
For 2000, 2.4GHz introductions will come from such companies as Panasonic, which plans to add two new multi-handset models that can each support up to eight handsets.
Meanwhile, Siemens, will fill out its 2.4GHz line with new single-handset models this year. The two new units scheduled for this year include the 240 and 242 at suggested retails of $119 and $169. Both offer caller ID/call waiting; the 242 adds digital answerer.
Lucent's Consumer Products group, which hopes to finalize its acquisition by VTech by the end of March, is adding three digital 2.4GHz models to its AT&T line this year. All will be capable of operating up to four handsets, which will be sold separately.
Donna Silbert, Lucent's director of product management, said the products will ship in the fall at retail prices ranging from $149 for a caller ID model to about $179 for a unit with both caller ID and answerer. In the middle is a $169 model with a second keypad in the base.
"Although the customer doesn't completely understand 2.4GHz, it is new and different, and that's important," Silbert said, adding that 900MHz analog prices are already hitting $19 and $24 price points. "Most of the pricing pressure is on the plain-vanilla 900MHz phone," she said. "Everything else is almost holding its own."
At ATlink, manager of business planning Derek Bing noted that the GE brand plans this summer to ship two digital 2.4GHz models: a leader unit to sell at $99 and a caller ID version at $119.
Bing predicts a lot of consumer confusion as 2.4GHz comes to market. But he sees an opportunity for select dealers and said, "There is a difference between 2.4GHz analog and digital spread spectrum, and retailers who can explain the differences will benefit."
Over time, he sees 2.4GHz multi-handset systems becoming more popular, but for the time being, Bing said, 900MHz and 2.4GHz will co-exist -- with 900MHz analog and 2.4GHz gaining in market share at two different price levels. "900MHz will become the primary cordless technology, and 2.4GHz will be for those looking for a step-up product," he explained.
As for pricing, in the back half, Bing sees 900MHz analog in the $24.99 range, while a step-up unit with an answerer or caller ID will be about $59. At the $60 to $100 price range, he sees 900MHz analog phones with features such as dual keypads and caller ID displays.
At VTech Communications, 2.4GHz is also on the agenda this year. The company is introducing two fully featured models that can operate up to four handsets. They are the VT2431 and the VT2461, which adds a digital answerer.
Another company entering the 2.4GHz game this year is Conair under the Southwestern Bell brand. Marketing director Jerry Rutigliano said the company plans to begin shipping a $99 basic unit in June, followed by a caller ID model at $129.95 in September, and a third unit with both caller ID and digital answerer at $149.95 in November. All will be digital.
"As 2.4GHz hits the under-$100 price points, you can reach a different consumer and different channels of distribution," Rutigliano said. "Many consumers are looking for the next step in cordless phones and are still wondering what DSS is, but 2.4GHz differentiates itself in the cordless category."
Toshiba product manager Mark Balinski said 2.4GHz will "be everywhere this year." And to help make that prediction come true, Toshiba is adding this year two models: a basic unit at a suggested $119, scheduled to ship in July, and a caller ID model to follow in August at $169.
Like others, Balinski said that consumers might not know exactly what it is, but they perceive 2.4GHz as something new, and that makes it a little easier to sell on the retail floor.
Retailers can also look for 2.4GHz models under the IBM phones offered by TT Systems. "We will have a number of 2.4GHz models in the IBM line in the second half," said TT Systems president Dan Leitman. "The market is moving in that direction."
At the high end of the 2.4GHz spectrum is Cygnion's multi-handset CyberGenie, a two-line 2.4GHz phone system that links to a PC and incorporates a range of communications features, such as a virtual personal assistant to greet callers and manage messages. It targets the home office/small office user and has a retail price of $499 for the base unit, handset and software. Additional handsets are $129.
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