Motorola bets big on smart home appliances biz; says India can be a big part of global ops

In terms of the Lenovo-owned company's foray into non-handset companies such as smart TVs and smart appliances, Motorola stated that India has the potential to become a major part of its global operations.

Via a strategic alliance with Flipkart, Motorola unveiled the world-first line of smart home appliances for Indian consumers earlier this month.

Mr. Prashanth Mani, Country Head, Lenovo Mobile Business Group and Managing Director, Motorola Mobility told ET, “We are the first country for smart appliances and smart TV. Most of these are global first launches. There is a lot of interest that global has. Smart home appliances are a new market as we have entered with premium devices”.

Mr. Mani stated that the demand for smart home appliances is expected to rise by $6 billion in India by 2022, powered by the country's increased per capita income and digitisation. "The market is $52 billion globally ... We think it's the right time to reach space."

Having introduced smart TVs and audio devices, the company is introducing smart air conditioners, refrigerators and washing machines.

“Our priority is that wherever we enter, we want to build premium positioning for the brand.”

The business is also growing its emphasis on the premium handset market and will launch the country 's global 5 G smartphone portfolio. Mr. Mani said, “We will also determine how rapidly we want to reduce 5 G prices in India. Motorola phones have seen growth across Flipkart and offline channels in the mid and low-end ranges".

The executive stated that amid lockdown and global supply chain problems, Motorola has not encountered any effects on its handset business this year. “This year is not going to have any impact of Covid on our handset business. 2020 will be better than 2019,” he added.

Mr. Mani stated that the handset company of Motorola is rising more rapidly than the industry. "We will continue to rise faster than the quarter-over-quarter market".

He stated that during the ongoing pandemic, Motorola did well globally, rising 33% sequentially in terms of revenue and 35% in terms of volume in the last quarter. “We are already profitable in India and have seen profitable growth in the first quarter of this year.”

As per Counterpoint Study, in the second quarter, Motorola had a 1% market share in volume. However, the handset brand expects it to fuel revenue during the festive season.

Last week, ET announced that Motorola is in negotiations with Dixon Technologies and Lava for a $1 billion smartphone manufacturing deal in India.

Mr. Mani declined to comment on these debates but said that the organisation is "well versed in taking advantage of the PLI system for handsets."

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.