Motorola is lining up products this year to liven up two of its businesses — handsets and network solutions. In the handset business, it has fallen way behind aggressive competitors such as Nokia, Samsung and LG. In network solutions and managed services, analysts reckon it lags behind players such as Ericsson, Huawei, Nokia Siemens and Alcatel Lucent.
The company has launched seven handsets over the last five weeks, the same as in the whole of 2009. Motorola India’s head of mobile devices, Faisal Siddiqui, says: “As of now, we plan to focus on all the segments.” Apart from six handsets of the WX Series that cater to the budget user, it has brought in its iPhone-challenger, the Milestone. Globally vetted as a popular smartphone powered by Google’s Android operating system, Milestone could be the first of more smartphones from Motorola. It has 20 smartphones slated for launch internationally, and Siddiqui does not rule out bringing more to India.
An analyst points out: “If Motorola primarily brings in phones from its global portfolio, they would tend to be higher-end models, while lower-priced handsets would mean products mainly for emerging markets such as India.” With 3G about to be introduced, smartphones could give Motorola a head start.
The communication is sedate, but Siddiqui says that it would change as Motorola launches more products this year. The brand is using print and the digital media to popularise its new products, including the Milestone. Eight websites including news sites, search portals and social networks are part of the campaign as are regional and national dailies.
However, analysts point out that Motorola would need to strengthen its hold on channel partners to claw back into the handset market. Says Ernst & Young Partner (technology, communication and media) Amit Sachdeva: “Unlike markets such as the US, which is an operator-led market, India is channel-driven; it even determines what kind of visibility your products will have in the stores. Other players have done much better in terms of strengthening their channel partnerships.” For the Milestone, Motorola has tied up with organised retail chains such as Chroma, MobileStore, Hotspot and, in the south, Universal, apart from distributors.
Analysts also point out that Motorola would have to step on the accelerator to market products in its networks business which provides telecom operators with hardware as well as services to manage them. Its latest launch, the iSim, is a wafer-like addition to SIM cards allowing five numbers to operate off the same card and lets applications be loaded and monitored by operators. “Motorola might need to co-brand such products with operators to increase their usage. The iSim would help improve the stickiness for operators,” says Sachdeva. Industry estimates put around 10 per cent of total mobile subscribers as the market for such products. Motorola India’s head of networks, Subhendu Mohanty, says: “It would allow operators to differentiate and increase the means of generating revenues through the various services of iSim.” Emerging markets of West Asia and Africa have already seen its launch. Depending on the deals it strikes with service operators, consumers in India could get the product by the end of this year.
With the new product launches, would Motorola be able to gain back lost ground in the handset market? More so now, when there are many more players in the market place? Its launches and marketing campaign will show if it will concentrate on high-end phones or the mass market. Neither of the two ends can be ignored.
