Global Business, Asia, India: Motorola is establishing India as its headquarters for the High Growth Markets (HGM) as it realigns its strategy to focus on developing, high-growth markets.

Motorola believes that growth in emerging markets will be mainly driven by products such as entry-level phones at around US$40.

Emerging markets will probably become more important as they go for growth, which is why many companies have positioned themselves to sell more products in China and in Latin America. Again, in Motorola’s opinion, that is why many equipment vendors and handset makers have been working on ways to get the cost of the hardware down for the past couple of years and also why the GSM Association launched its initiatives for emerging markets, including awarding its "emerging market handset" tender to Motorola.

Motorola believes it is the first multinational to make India its global headquarters for the HGM initiative. She is regarded as being of strategic importance to Motorola’s global operations and because of the highest growth rate and potential within the identified HGMs and the geographic advantage.

The decision is claimed to be unique for any mobile devices player in the industry as Motorola is the only player to position a global senior level team in India, so as to cater for HGMs. In second half of 2004, Motorola had identified Africa, South West Asia, North Asia and South East Asia as precisely those HGMs.

Motorola is expanding its product portfolio and distribution network, investing heavily in marketing campaigns, conducting its initiatives like Razr Express Service, etc. India is the company’s R&D and soft manufacturing hub worldwide, as well as for developing next generation technologies. About 40% of software in all Motorola handsets is developed in India. Last year, nearly 20 new phones (GSM, 3G, CDMA) were shipped last year, including Razr features/software out of Indian R&D. New models like PEBL and SLVR are also based on R&D efforts from India.

* In a major transfer of five senior Motorola executives, Allen Burnes, Vice-President, HGM, Mobile Devices, will move to India along with his team of senior Directors: Michael Warren-Smith, Director Finance, HGM; Steen Ronholt, Director Business Operations, HGM; Andre Kangas, Director Product Marketing, HGM; and David Taylor, Director Strategy, HGM.

more info: www.motorola.com