By MELVIN G. CALIMAG
After making itself visible again in society circles, figuratively and literally speaking, Motorola – the inventor of the cellular phone and once the world’s dominant phone maker before being toppled from its lofty position -- is itching to have a triumphant return to the limelight by training its eyes on the lower part of the market.
The American tech firm made this goal clear at last month’s Communic- Asia event held at Singapore, dubbed as the largest ICT show in this part of the world. With the iconic waferthin Razr phone model putting the company back in the game, Motorola said it’s now time to make its comeback complete with new entry-level phone models within reach by the greater number of consumers.
Steve Lalla, vice president and general manager for mass market products at Motorola, said the company wants to bury the perception that it is already contented in the success reaped by the Razr in the middle and upper portion of the user spectrum.
"We recognize that consumers have different priorities and interests, and we believe that that our mobile handsets should reflect this," he stated, taking note of the fact that the "next billion" of phone users would come from the low-end market segment.
The official said large countries such as China and India, as well as emerging economies in other parts of Asia, Africa, and Latin America, offer tremendous opportunities for phone manufacturers like Motorola to expand as the majority of the population in these areas have yet to acquire their first mobile phone.
David Taylor, Motorola’s director of strategic operations in high-growth markets, said there are still about four billion people out of the 6.5 billion total world population which do not have mobile handsets. "Growth will basically come from the emerging markets."
Apparently, Motorola’s move was inspired by the successful program it had with the GSMA (GSM Association) in 2005 when the group selected the company to supply "ultra lowcost" handsets to emerging countries, which is defined as those with mobile penetration below 50 percent.
In that program, Motorola offered a family of products built on the C114 platform that was optimized for durability, long talk time, and design preferences of emerging markets. Motorola sold the handsets at a price point below (about R2000) and forged a strategic plan with GSMA members for follow-on products at sub (about R1500) price points.
The company’s strategy for the Philippines treads on the same path but with a slightly different approach, according Motorola Philippines country manager Patrick Aronson. "The Philippines already has a 40-percent handset penetration rate so the opportunities lie on the replacement market. We want consumers to buy brand new but cheap handsets instead of second-hand units that have many problems."
But the local office sees a greater challenge in growing its market share outside of Metro Manila, Aronson said. Unlike in the urban areas there is a "halo effect," meaning non-users can be influenced to carry a mobile phone, the countryside is an entirely new market with no similar trigger that could spark widespread usage.
Another vehicle which the subsidiary is literally using these days to push entry-level phones in the provinces is the MotoBus, a converted passenger bus whose main task is to showcase the company’s products.
The MotoBus, according to marketing manager Mari Litonjua, also serves as store-on-wheels and service center where provincial folks can buy or have their Motorola phones repaired.
At this year’s CommunicAsia, Motorola introduced its biggest line-up yet of entry-level handsets. The new portfolio includes two value-priced clamshell models, the Motorola W220 and W375. It also includes candy-bar types W170 (CDMA), W208, and W210 (CDMA).
Motorola said this range of handsets have capabilities that are uniquely adapted to the needs of the emerging markets. These features include two weeks of stand-by time in response to ready access to electricity; a "lantern" facility to be used at night or in dark environments in answer to lack of electricity-powered light; and FM radio to give consumers access to news and information.
In conjunction with the launch of the new phones, the company has also unveiled an initiative called Motorola Reach, which is actually composed of GSM solutions aimed at network operators in Asia Pacific.
The solutions portfolio includes a range of GSM base stations for extended cell coverage in rural areas, cellsite solutions for outdoor and remote locations including alternative power; wireless backhaul and media gateway supporting terrestrial and satellite connections.
The company said the initiative is particularly relevant for emerging markets such as India, China, Indonesia, and Bangladesh where operators face explosive growth in mobile subscription.
But while the business opportunity lurks in the entry-level market, Motorola is also not letting go of its newfound niche in the high-end segment.
"The market is very different for emerging countries," said Lalla. "It is not homogeneous at all and is highly polarized, which means the demand mainly comes from the high-end and low-end segments."
To cater to the upper part of the market, Motorola also took the wrap off its latest sleek new phones including the gold-plated MotoRazr V3i by Dolce and Gabbana, four new PEBL Colors, and the Rokr E2.
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