Phablets - The newest form factor of the Market

In a recent report released by Counterpoint Research, Lenovo has positioned itself among the top five smartphone device makers in India with a market share of 4.7 % in the October-December 2014 quarter. India being the third-largest smartphone market in the world, Lenovo faces a stiff competition, but it is because of its product innovation, vast and varied choices and enhanced value that have kept the brand maintain its position in the top layer. In a chat with VARINDIA, Sudhin Mathur, Director, Smartphones, Lenovo India, discusses the challenges and the growing popularity of phablets which is affecting shipment of tablets. Smart device market in India The concept of Phablets has picked up in India significantly. Consumers nowadays enjoy bigger screen devices. This helps in a better media consumption experience. Phablets offer tablet-like display added to the functionality of a phone. There has been a dip in the number of tablets being shipped to India which is a clear indication of its declining popularity. The popularity of phablets in the range of screen size 5–7 inches is soaring. This is definitely the future trend since media consumption on phones has increased remarkably amongst consumers. Challenges India is a price-sensitive country and people are inclined towards low-cost smartphones. But providing a low-cost smartphone is challenging because there are significant investments that go into it. It is important to balance out the consumer expectation vs the features that are provided. If there are no economies of scale, it is difficult to provide low-cost smartphones. Lenovo has come up with different design smartphones with Vibe series, especially the Vibe X2 which is a one-of-its-kind layered smartphone. As the first layered smartphone, it not only has an eye-catching design but also has solid specifications. Apart from this, Lenovo has also come up with affordable smartphones to increase the customer’s reach. Strategy After analyzing the smartphone market dynamics of India and customer’s behaviour, the smartphone maker has entered the market with a wide variety of devices. The product range also includes affordable budget devices. It is due to constant product innovation, wider choices and enhanced value that have helped the brand to earn an important position in the Indian market. Lenovo also aims to strengthen its position in the market through innovative products. It also places emphasis on its reach to customers and ensures its availability across India through large and small retail format outlets, operator channels, IT channel partners and online channel partners. "The acquisition of Motorola has helped us increase our reach in the mobile handset market. Also, it has made us the number 3 smartphone manufacturer in the worldwide mobile phone market," said Sudhin Mathur, Director, Smartphones, Lenovo India. The acquisition is a part of the company’s strategy to get hold of important markets along with talent, experience and expertise that will help the company to drive innovation, build strong relationships with customers and partners and significantly grow both of these crucial businesses. Entry into Wearable devices Lenovo has recently entered the wearable space by introducing the Vibe Band VB10. The VB10 Band is Lenovo's first wearable and the company went for long battery life. The E-ink display allows the Vibe Band to last the whole week on a charge, according to Lenovo. It has a thin form that is waterproof for use in the rain or while working out. It can be worn in the shower as it is submersible. The Band features full fitness tracking functions and works with a phone via always-on Bluetooth. aparna@varindia.com