India Moving To Low-Cost Devices Faster Than Other Markets: Lenovo
NEW DELHI: The Indian market may be flooded with affordable smartphones with indications of prices declining further, but Chinese tech giant Lenovo believes that providing a good device at a low price point has become a major challenge.
According to Lenovo India Managing Director Amar Babu, the transition to low-cost devices is faster in India, unlike other markets.
"The value and quality expectations from the customers are same, if not more pronounced. Therefore, providing a good device at a low-price point becomes a major challenge," he told PTI.
Over the last few months, handset makers have launched a series of smartphones across price points, but a huge chunk of these were aimed at tapping the sub Rs 12,000 category ($200).
International brands like Motorola and Nokia launched new products in the category, which analysts believe could be a Rs 280 billion opportunity (by value) at the end of FY2014-15.
"Innovation is what sets us apart, and creates an edge over our competitors. To become a strong player in the segment, we will continue to bring new technologies at different price points, reinforcing our global smartphone strategy," he said.
Globally, Lenovo is the fourth largest smartphone maker with 5.4 percent share of the market.
Incidentally, Lenovo is waiting for regulatory approvals for the $2.91 billion-acquisition of Motorola from Google.
Handset makers in India are betting big on mobile Internet to reach out to newer audiences. Various reports suggest that the next billion population accessing the Internet for the first time will do so on their phones instead of personal computers.
Companies like Microsoft, which acquired Nokia's handset division, are also targeting the affordable smartphone category aggressively, estimating it to be a $50 billion annual opportunity.
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