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Lenovo’s $2.9-billion acquisition of Motorola could change the Indian smartphone market dynamics in the coming years. It offers users an alternative to the Android smartphone sold by market leader Samsung. Lenovo could also ride on Motorola’s brand to take on the Indian vendors in the low and mid-end segments.
Business Line spoke with Amar Babu, Managing Director of Lenovo India, on how the acquisition will impact India’s ₹35,000-crore mobile phone market.
How does the Motorola acquisition help Lenovo in India?
This fits in with our PC plus strategy. Motorola will add to our smartphone piece in this strategy. We are yet to decide on our game plan in India but Motorola adds value in terms of its brand, it brings scale and technology to our existing smartphone strengths and it will also help in future product roadmap.
Motorola was once huge in India but over the last few years it has taken a beating in the market across the world. Can Lenovo resurrect brand Motorola?
We are confident that we will be able to integrate Motorola with our overall vision. If you look at our previous acquisitions you will see why we are so confident.
When we acquired IBM’s computing business, it was a loss making unit.
Today, we have turned that business around to become the largest player.
Similar thing happened after we did the deal with NEC. Our track record shows that we have developed expertise in integrating acquired businesses and make it stronger.
Through this acquisition will you be first taking on the Indian mobile phone brands and then Samsung?
Indian smartphone market is seeing a 70-80 per cent growth. There are significant opportunities for everyone to grow. We have the right product strategy and a strong brand to do well. We are not targeting any one part of the market. We are competing across the full range with devices at different price points.
So what can Motorola fans in India expect from Lenovo?
Post the acquisition we now have MotoX, MotoG and Droid from the Motorola stable.
We will preserve and protect these brands and just like what we did with ThinkPad computers after acquiring it from IBM, we will take Motorola brands to new heights.
Some analysts say that it will take time for Lenovo to get mileage out of Motorola’s products in India. Do you agree?
Globally, the acquisition will make us the third largest smartphone vendor. Motorola comes with very strong relationships in number of countries especially the US and Latin America.
In India, I don’t see any immediate benefits but once we integrate the business then it will start making a difference.
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