Motorola Mobility said it has resolved the issue of some non-working Moto G smartphones which was discovered over the last couple of days and apologized for what it called was a "one-off error", while its retail partner Flipkart offered a monetary credit and a full refund if a customer wished to replace the faulty handset. The US-based smartphone maker had informed customers over the last two days that some of its best-selling Moto G handsets shipped into India did not have registered and verified International Mobile Equipment Identity (IMEI) numbers, which rendered the devices useless. An IMEI is a 15-digit unique code that helps cellular networks identify valid phones. It is the unique identity number of each device, which is used to track it when stolen or misplaced.
Motorola had communicated to consumers those devices that have IMEI number beginning with 3533 and that with 16 GB memory versions were most likely facing connectivity issues. "This particular issue is now resolved and the affected Moto G devices have been registered with all network operators. All impacted customers can activate their phones immediately," a Motorola Mobility spokesperson said Wednesday.
While apologizing for the glitch, Motorola said that as a goodwill gesture to those affected, popular ecommerce website Flipkart - the handset maker's exclusive retail partner - has credited Rs 1200 into Flipkart wallets or accounts of impacted customers for any purchase. That apart, Motorola has offered to replace the faulty handset or fully refund customers who did not wish to wait for a replacement.
Neither Motorola nor Flipkart revealed the number of complaints it received or the number of devices that were replaced or cases where it refunded customers' money. India is the most critical geography for Motorola, where the smartphone market continues to be one of the top growing ones and is expected to cross 80 million units by end of the year.
The company's international come back started with the Moto G launch in India last year and it strengthened its position in the consumer's mind with the global launch of Moto E here, which has been sold out since it was put on sale on Flipkart.com. The US-based company had wrapped up operations in India in August 2012, but has chosen the online-only strategy on its come back into the India market since late 2013.
Motorola Mobility, which is in the transition phase of being transferred to Lenovo from Google, said that verification of IMEI numbers with Indian mobile operators was carried out at the back-end. It added that the problem emerged in a single batch due to a 'one off error' and that "measures have been taken internally that can't be disclosed."
Analysts are divided on the impact of this situation on Motorola with some of the view that it may create a chink in the company's online-only strategy with others highlighting that the incident was a small one-off.
"It's good that Motorola acted proactively and offered either to exchange the devices or refund the money which would help them pacify the consumers to certain extent," said Gartner's principal analyst Vishal Tripathi. "But somewhere, this situation will shake consumer's confidence and would impact a bit of brand value".
A Delhi-based industry watcher said that despite having a retail presence only online, the device maker has offline service centers and a call centre for resolving any issue faced by its customers.
"The company has taken responsibility and owned up immediately. Moreover, such a problem occurs very rarely and it's a small issue," the person said.
Reference: TOI
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