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Demand for the iPhone 4(IP4) may be dampened by the well publicised antenna attenuation issue which affects signal strength.

OSK Investment Research, in its research note on the telecommunication sector, cited a survey by an independent consumer outfit in the United States, which said 20 per cent of likely IP4 purchasers cited the antennae issue as a key reason affecting their purchasing decision.

The research house also said the sale of IP4 could also be curbed by the growing number and rising popularity of Android smartphones which overtook iPhone sales in the US in first-quarter of 2010.

"Based on our channel checks, sales of android smartphones are gaining momentum with the slew of promotions and the introduction of new models over the past month," it added.

Maxis recently unveiled the latest android-based HTC Wildfire and Sony Ericsson Xperia X10, which was being retailed between RM549 and RM799.

This, according to OSK Investment Research, was relatively more affordable than the IP4 which was expected to debut in Malaysia by the end of the week.

"Although the iPad has not been officially launched locally, we believe there is already a small and growing base of users who have purchased their devices from abroad and from the gray market," it said.

Maxis is expected to hold a grand launch party for invited guests at the stroke of midnight on Sept 24 and the device will be available the next day at selected outlets and at all other outlets from Sept 27.

In terms of the sector pick, OSK Investment Research chose Axiata, which was the only domestic telecommunication company offering regional growth with a maiden dividend anticipated in the 2011 financial year.

"Although Axiata's mobile subsidiary, Celcom Axiata, does not offer the iPhone, it is witnessing strong growth in the sale of its Blackberry and mobile broadband plans," OSK Investment Research said. (PNA/BERNAMA)

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