- Realme gave strong competition in the online segment
- The company’s organisation restructuring also had an impact
According to a report by ET Telecom, sales at Motorola Mobility India — which houses both Motorola and Lenovo smartphone brands — fell 71 per cent year-on-year (YoY) to Rs 1,972.8 crore, for the fiscal year ended March 2019.
Counterpoint Technology Market Research associate director Tarun Pathak told the news daily that Motorola lost in the sales channel strategy. Realme gave strong competition in the online segment, especially in the sub $200 (Rs 14,000) segment where Motorola had its strength. Apart from this, their organisation restructuring also had an impact.
Needs a strong strategy
Veratech’s founder Mohit Yadav told ET Telecom that the growth in FY18 was fuelled by borrowings, while a decline in sales has led the company to deleverage by disposing of assets last fiscal. Motorola is a recognised brand. It needs a strong strategy that can make use of its brand value to help it ride the tide.
Ironically, the company had grown sales by 400 per cent over the previous year when Lenovo had consolidated its entire smartphone business under this entity.