INQ plans two new low-cost phones for data users

Mon Aug 3, 2009 8:10pm EDT

* INQ plans phone launches for Sept, Oct

* Eyes U.S. INQ phone launch in 2010

NEW YORK Aug 3 (Reuters) - Cellphone maker INQ Mobile plans to start selling two new low-price cellphones in the coming months, including one with a computer-like keyboard aimed at encouraging cost-conscious consumers to sign up for high-speed data services.

INQ, a unit of Hong Kong's Hutchison Whampoa (0013.HK), is looking to cash in on the craze for smartphones by offering phones that support some Web services like Facebook and Twitter but cost much less than fancier devices from rivals such as Apple (AAPL.O) and Research In Motion (RIM.TO).

While the cheapest iPhone costs $99 in the United States, INQ says its devices are inexpensive enough that people could expect them to be offered free or sold for less than $25 to customers who commit to a wireless service contract.

The INQ Chat 3G phone, which has a mini-QWERTY keypad, and the candy-bar shaped INQ Mini will first go on sale at Hutchison's high-speed wireless service, known as 3, in six countries this year. They will hit the U.S. market next year.

Without carrier subsidies, INQ said the Mini would cost less than $150 while Chat would cost less than $200.

The Mini will go on sale in September while the Chat 3G will launch in October. Both devices will be sold first through 3 in the United Kingdom, Ireland, Sweden, Italy, Australia and Hong Kong. INQ said it also expects other unaffiliated operators to sell the phone but did not give details.

Current Analysis analyst Avi Greengart said that INQ's success in the United States would depend on whether it can convince operators to offer cheaper data service fees because consumers who are interested in buying a cheaper phone for data services would only do so if they could afford the service.

"In the U.S. it will depend whether they get the carriers and whether carriers buy into the exact same vision," Greengart said.

As well as supporting microblogging service Twitter, INQ said its new phone would be able to play music copied from users' desktop-based iTunes music libraries.

INQ said its iTunes synchronization works differently than a similar option from Palm Inc PALM.O, which ran into trouble with Apple for synching its Pre phone with the software. (Reporting by Sinead Carew; Editing by Gary Hill)

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