Lenovo, who recently bought Motorola and became the world’s number 3 smartphone manufacturer, announced this week that it will focus on countries other than China whose market they consider saturated. Emerging countries will no doubt play an important role in their future strategy.There is no doubt that Lenovo-Motorola will have an opportunity for a substantial market share in developing countries where user demands for low cost smartphones are unprecedented and not dropping anytime soon. Lenovo-Motorola also has unique products to offer with their Moto G and its little brother Moto E.
However, Lenovo-Motorola will have to launch another more affordable device to complete their range if they want to truly gain market shares in developing countries. When we speak of bridging the digital divide, we are talking about bringing the next 4 billion people online. Four billion people means a huge, almost endless need for low cost mobile devices.
The need, and therefore the market, is huge, and it will take many players to bridge the digital divide. Affordability is key in developing countries, where cost can be a serious barrier to Internet adoption. So the more low cost smartphones there are, the better chance we will have to connect the world.
Already today, there are more smartphones in use throughout the world than people (i.e more than 7 billion). And only one third of the world has access to a decent, even if often hectic, data network to get connected to the internet…India alone represents a market of nearly 1.3 billion people and the whole of the African continent, approximately the same.
So, by the time the next 4 billion are brought online, the number of smartphones in use in the world could well double…that means 14 billion smartphones without taking into consideration all the other connected devices…An incredibly huge market that the Xiaomi and other Samsungs of this world will definitely focus on…