- FingerMotion is an evolving technology company that aims to improve people’s lifestyles through technology and innovative products and services
- The company recently launched mobile device protection products in partnership with a Fortune 500 insurance company and major Chinese telcos
- The products will offer three tiers of protection: accidental damage to screens, mechanical breakdown, and trade-in solutions
- FingerMotion has taken a strategic approach to launching the products as it targets a burgeoning market set to be valued at about $12.2 billion by 2028
Evolving technology company FingerMotion (NASDAQ: FNGR) recently demonstrated the flexibility of its business model that affords it even more ways to monetize its vast active user base when its subsidiary, Shanghai TengLian Jiujiu Information and Communication Technology Co. Ltd (“TengLian”), launched the mobile device protection products (https://ibn.fm/ejdH6). The launch casts in stone a cooperation agreement entered in February this year between TengLian and two of China’s largest telecom operators, China Unicom and China Mobile (https://ibn.fm/Jh3VX).
The partnership will see the Chinese carriers distribute the mobile device protection products as embedded, value-added features bundled with existing voice, device, and data subscription plans. Underwritten by NYSE-listed 125-year-old Fortune 500 insurance company with extensive customer experience and a reputation for providing mobile insurance, FingerMotion’s mobile device protection products will offer three tiers of protection – accidental damage to screens, mechanical breakdown, and trade-in solutions. This is a departure from the norm in the Chinese mobile device protection market, where players have, until now, primarily limited their scope to the provision of broken screen protection only.
FingerMotion’s more comprehensive approach to offering protection products is strategic in several ways. Firstly, China is home to more than 1.66 billion mobile phone subscriptions (as of April 2022) (https://ibn.fm/wMVgO), which constitutes about 23% of the total number of mobile users globally (7.1 billion as of 2021) (https://ibn.fm/FhX5P). With analysts at ResearchandMarkets.com expecting the global mobile phone insurance market to grow from $27.3 billion in 2021 to $53.2 billion by 2028 (https://ibn.fm/tpjk1), China’s share of the mobile protection market could be in the region of $12.2 billion by 2028, up from an estimated $6.3 billion in 2021. Through the launch, FingerMotion is taking aim at this burgeoning market.
Nonetheless, FingerMotion is taking a phased approach to launching its products, starting with Henan province, which has a mobile subscriber base of 90 million users. The company looks to launch its products in the remaining provinces in the coming months.
Secondly, a 2021 study that surveyed Chinese buyers found that 90% of the respondents consider 5G a must-have feature on smartphones and expect their next phone to have 5G capabilities (https://ibn.fm/VPdPm). Furthermore, more than a third of the respondents who owned high-end smartphones indicated they would replace their current phones within six months. FingerMotion’s products, which include a trade-in program, are, therefore, designed to cater to buyers looking for newer technologies and 5G phones.
According to an analysis by Seeking Alpha, FingerMotion’s strategic approach to rolling the products feeds off the strengths of all the parties involved (https://ibn.fm/eH4Cz). For instance, although mobile operators are adept at distributing products, they cannot deal with or process customer claims in a way that screens for fraud and abuse. And that’s why the company is working with an experienced underwriter that can, in turn, also benefit from FingerMotion’s big data insights platform, Sapientus, which uses data and proprietary algorithms to, among other capabilities, identify abuse and fraud.
Insurance relationships and built on trust between the insurer and the customer. Against this backdrop, “customers view insurance offered through the carrier as a vetted product that they can rely upon, which means all they have to do is evaluate the pricing,” the Seeking Alpha article continues. “Consumers want a fair claims process that they feel only a large company could process quickly and efficiently.” And that’s precisely what FingerMotion is providing through its partnerships with major Chinese telcos and a Fortune 500 insurance company.
“This latest cooperation agreement with one of the world’s leading mobile device protection companies demonstrates our ability to facilitate innovation by leveraging globally successful business models and customizing them for the unique needs of the Chinese market,” commented FingerMotion CEO Martin Shen. “The telcos are estimating robust demand for new smartphones as customers transition to 5G. It is expected that the device protection programs will be transformative to FingerMotion in terms of revenues and profitability, possibly eclipsing the success of our existing core business segments.”
Shen emphasized that, in the current political landscape, the device protection insurance business, which relies on new mobile phone sales, is not a subject of Chinese regulatory scrutiny.
For more information, visit the company’s website at www.FingerMotion.com.
NOTE TO INVESTORS: The latest news and updates relating to FNGR are available in the company’s newsroom at https://ibn.fm/FNGR
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