The foldable smartphone market has just got a big kick along in Australia with Motorola the Company that pioneered the category throwing their hat in the ring with an all new Razr 2022 model.
Back in 2019 Motorola rushed a version of the Razr to market, it was expensive and lacking on several fronts. This appears to have had a major impact at Motorola with the new model a massive improvement and almost $1,000 cheaper.
According to Samsung executives in Australia the foldable market initially represented 12% of sales however this appears to have slipped in recent months according to retailers and carriers.
Samsung recently launched a new Samsung Galaxy Fold 4 and a Flip 4 model that will compete head on with Motorola who doubled their revenues in Australia.According to recent filings with the Australian Securities and Investment Commission Motorola, a Lenovo owned Company, delivered revenues as of December 31, 2021, of $25.5M Vs $12.5M in December 2020, in the same period that TCL revenues went from $21.5M to $13.3M.
Still small revenues compared to Samsung and Apple who are not in the foldable market Motorola has the brand clout to seriously take on Apple and Samsung at the top end of the market.
The lates model Razr has a lot going for it, however Motorola has to invest more in software because this is the glue that results in consumers staying with a brand.
You only have to look at the way consumer “love” their Apple devices even though the technology is nowhere near that of brands such as Samsung, Nokia and Motorola.
The latest model has Snapdragon 8+ Gen 1 processor, 12GB of RAM and 512GB of storage with a 3,500 mAh battery with 30W TurboPower fast charging support.
It also has folding 6.7″ FHD+ pOLED display with refresh rates up to 144 Hz for incredibly smooth performance.
The display is also HDR10+ certified and covers 100% of the DCI-P3 colour gamut.
A massive improvement is the 2.7” AMOLED Quick View display which can use the main cameras for taking a high-res selfie – or flip open the phone to use the internal 32MP selfie camera.
Motorola has the brand clout to get them where they need to go and Australians have an insatiable appetite for premium and affordable premium devices.
Also growing in Australia is the value market where Motorola built their foundations however increased phone bills are driving customers away from major mobile carriers and into the arms of budget “virtual” network operators, a study of Australia’s phone industry recently found with many of these handsets being purchased online or via none mainstream retailers.
A big winner is Boost Mobile who account for the bulk of Telstra’s pre paid business. For several years Telstra did not range Motorola value devices, instead they partnered with banned Chinese Company ZTE who manufacture devices that compete with Motorola. To get round the problems associated with the ZTE brand Telstra is stamping third brand name on the 100% Chinese ZTE product.
Now the phone industry having now returned to growth after 18 months of losing customers during the pandemic brands such as Motorola and Nokia are experiencing growth in the Australian market.
The recent Telsyte Australian Mobile Services Market Study found the total number of mobile sales grew 696,000 (1.9%) to 37 million during the six months to December 2021, with handheld SIOs adding 271,000 connections.
The market recovery follows a handheld segment decline of 1.1 million SIOs during the 18 months between January 2020 and June 2021, as a result of closed international borders and stalling population growth.
This is good news for Motorola, who have an opportunity to not only take it up to Samsung in the affordable premium market but strip share from the likes of Chinese brands Oppo and Vivo who have refused to acknowledge that if asked they would hand over information on Australian owners of devices as well as allow access to the device by security services from the Chinese Communist Party who recently m oved to turn communication Companies and various technology Companies in China over to State controlled entities.
Motorola is 100% owned by Lenovo and in the USA market where Chinese brands were kicked out of stores due to bans Motorola and Lenovo have grown mobile share.
As of September 2022, Smartphone shipments in the USA grew 12% YoY as supply chain dynamics improved and fell 16% QoQ due to regular seasonality in Q1 2022. The big winner was Lenovo and Motorola who grew their share of the US market by 127% YoY, as it saw sales of its G-series models increase. Now the business is reaping the benefits of a range of affordable premium models that include their Motorola Edge 30 and Edge 30 Ultra that was recently launched in Australia.
