Company has the edge in technology

In an interview with StarBiz, Kosmo Technology Industrial Bhd group managing director Norhamzah Nordin shares his thoughts on the company's new venture into mobile phone manufacturing. 

StarBiz: Mobile phone manufacturing is a tough business. Why is the company going into the business? 

Norhamzah: Kosmo is a research and engineering based company involved in the automotive business. The mobile manufacturing business is also engineering and research driven. We believe our expertise in these areas gives us a competitive edge in the mobile business, especially in design, electrical and electronics and manufacturing capabilities. 

 

StarBiz: What is the company's greatest achievement in the mobile manufacturing business so far? 

Norhamzah: We (Kosmo and M.Mobile) have collaborated successfully to produce our own mobile phone technology with the help of software and hardware engineers sourced from abroad. We have exclusive rights in the mobile technology, including the mobile phone designs, (models) and are patented.  

This gives us the right to sell our phones globally at competitive prices. We only source for components in the manufacturing process. 

 

StarBiz: What are the challenges facing the company? 

Norhamzah: The priority is to increase our skilled workforce to meet the target production volumes.  

There are now about 70 highly skilled and knowledgeable software and hardware engineers in our research centre, and we need to double the manpower every year to about 1,000, if we are to meet the target. 

StarBiz: Don't you think the company's target of selling 25 million phones per annum in five years is too optimistic? 

Norhamzah: The estimated world demand for mobile phones in 2006 is about 1 billion units. Our target represents only 2.5% of the global demand for mobile phones this year. 

 

StarBiz: What is your break-even point?  

Norhamzah: We have to sell 100,000 units per model to break even. 

 

StarBiz: How do you plan to market your mobile phones locally and worldwide? 

Norhamzah: Our exclusive local distributor is VC Communications Sdn Bhd, which will market our products via their stockists nationwide.  

Our website, ww.kosmotech.com, also has a link to our distributor's website, which will inform potential customers where to purchase the phones. 

In collaboration with M. Mobile, we also plan to aggressively promote the mobile phones overseas through our existing network and caampaigns.  

 

StarBiz: Which markets are you focusing on? 

Norhamzah: Besides Malaysia and neighbouring countries like Singapore and Indonesia, we also plan to market our mobile phones to the Middle East, especially those with Islamic features.  

 

StarBiz: Bursa Malaysia recently cautioned investors on trading in your company's shares. What is your view on this? 

Norhamzah: It's the stock exchange's prerogative. We can't comment.