With the iQOS 3, like older designs, users must put the device back from the case to charge after each time they use the idea. The fresh iQOS 3 Multi can be used 10 times before needing to be recharged. the idea’s bulkier than the traditional iQOS device, however executives say consumers also requested This specific change.
“In today’s world, you need to update the product as well as also integrate consumer feedback as well as also insights,” CEO Andre Calantzopoulos said in an interview with CNBC. “So for people who have been with the current type of iQOS, clearly the idea’s about time we have something fresh. however the key objective here can be also to convince more people in Japan as well as also around the earth to switch out of cigarettes as well as also into iQOS…”
Calantzopoulos said introducing the iQOS 3 Multi eliminates competitors’ advantage. Some brands, including British American Tobacco’s Glo as well as also KT&G’s Lil, advertise themselves as superior to iQOS because they can be used multiple times without needing a charge, he said.
In Japan, PMI will introduce HEETS, a less expensive line of heatsticks for iQOS devices in an attempt to woo consumers who may have felt switching coming from cigarettes to iQOS was too pricey. Currently, only Marlboro-branded heatsticks are available in Japan. The addition of HEETS makes Japan the first market to offer both a premium as well as also a value brand.
PMI originally planned to introduce HEETS from the first quarter of next year however sped up the launch as growth has commenced to stall.
Japan has been such a successful market for PMI in which the idea’s become somewhat of a proxy for the company’s prospects in pivoting toward smoke-free products as well as also fresh revenue streams. When PMI in April said growth in Japan had “plateaued,” the company’s stock plummeted 16 percent to its worst day since spinning off coming from Altria in 2008.
PMI shares are up nearly 5 percent over the past week after showing progress in most iQOS markets from the third quarter.
Executives said they expected sales to slow at some point once they converted early adopters as well as also innovators however hadn’t quite attracted older, more traditional cigarette smokers. They expect the fresh products will appeal to both existing iQOS users as well as also fresh ones.
from the third quarter, iQOS captured 15.5 percent of the entire tobacco market in Japan, up coming from 11.9 percent from the year before however down slightly coming from 15.8 percent from the first quarter of This specific year. In Korea, iQOS represented 7.4 percent from the third quarter, up coming from 2.5 percent coming from the year-ago quarter however only slightly higher than the 7.3 percent from the first quarter of This specific year.
Calantzopoulos said investors can expect to see how the fresh devices are affecting the company’s financial results by the end of the first quarter next year.
PMI can be awaiting a decision coming from the Food as well as also Drug Administration on whether the idea can sell iQOS from the U.S. If approved, the device could not be the fresh ones.