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CEBU CITY, Philippines - Faith Sabandal, 22, had her first mobile phone when she was 16. It was a gift from her parents after she obtained a 1.60 general average from a science high school in Tacloban City.
When Sabandal came to Cebu in 2003 to take up her bachelor's degree, she used the same phone, Nokia 3315, to constantly communicate with her parents, who were in Tacloban.
"My cell phone was considered to be top of the line that time (sold between P4,000 and P5,000 in cell phone shops). It was worth it because it served the most basic functions – send text messages and make or receive calls," she said.
She said three factors were considered by her parents before they purchased the phone — price, features and brand.
Sabandal's parents are only two of the many Filipinos who realized in early 2000 that owning a mobile phone was a necessity, a shift from the previous notion that the gadget was reserved to the privileged few.
With the birth of prepaid accounts and the presence of affordable mobile phone units in the market, students, specifically those who come to the city to study became one of the strongest markets of cell phone manufacturers and mobile service providers.
These trends became evident to couple Franklin and Lycel Tan in 2002 as they observed a significant increase in the number of mobile phone users among the Cebuano population.
The couple owns a cell phone retail store, My Phone Pal, which has three branches in Coco Mall on Osmeña Boulevard and Elizabeth Mall on N. Bacalso Street, both in Cebu City and North Atrium in Mandaue City.
While being conscious of the price is the common trait of those who want to buy the units, Franklin noted, less attention is given to "after services" or warranty contracts.
"The most important factor is to make sure that the store where you bought your units has warranty so that you can always go back to the store when something goes wrong with your cell phones," he said.
However, this is not the mentality of most buyers.
"As long as they get the unit for a lesser price, most buyers do not care anymore what happens after they buy the phone," Lycel said.
The couple also noted that the proliferation of fake units, if not refurbished or reconditioned phones, has affected the public's perception on getting the best value for their money.
Franklin said a fake Nokia 6300 unit costs P3,500 or 50 percent less than the price of the original unit.
He said cheaper prices do not automatically ensure quality products.
He warned the public to examine the units first, including its accessories such as a charger and a battery, before purchasing them.
"They (clients) have to do research. They can always go to websites and check on the models. Warranty units have stickers, better check on them," he told Cebu Daily News in an interview.
Franklin said demand is still high for low-end units.
A new development is that most clients look for units which have built-in FM radio aside from the units' capacity to perform basic texting and calling operations.
Lycel said those with limited budget need not buy second-hand phones since cell phone manufacturers are producing brand new phones at prices ranging from P1,400 to P2,000.
For instance, Nokia 1200 and 1208 units are sold within this price range.
The couple noted that their stores only sell brand new phones as they aim to build a permanent reputation that they are for quality products and provide after-purchase services.
"Mobile phones are very portable so they are susceptible to different elements. With brand new phones, there are less complaints. The problem with second-hand phones is that you don't know when it'll go wrong again. It could be days, weeks or months," Lycel said.
"In the long run, it's more expensive to operate. The chances of customers going back to your stores for repairs are bigger," she added.
The decision to sell brand new phones is also their way of managing competition brought about by several cell phone shops in the city.
"There will come a time that stores selling refurbished phones will stop. As of now, everybody will go downtown to buy phones at half the price. But in the long run, this will wear out. A consumer does not have enough time each month to go downtown and have his phone fixed," Lycel said.
In a separate interview, Sabandal said mobile phone clients should consider their budget before deciding to purchase any unit.
To parents who are planning to buy mobile phones for children, her advice is: "Start with the most practical cell phone. Don't buy your children the cell phones they want or what is currently in. Rather buy what they really need."
Berhard Requina, who works for a fast food chain, said clients should also check the prices of units in different stores.
"Look for durable yet affordable units and buy only at reliable cell phone shops to ensure quality and a warranty," Requina said.
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Business Focus comes out every Monday. For this June, Business Focus highlights companies or consumer trends related to education and back-to-school concerns.
