Mr. Martynov was invited by Tech Crunch China to speak about innovation at a panel in Beijing on Monday. (Photo/ECNS)
(ECNS) -- YotaPhone founder Vladislav Martynov has mapped out an ambitious plan for the Russian phone in the global market.
"Just like the first iPhone, the YotaPhone is fundamentally different from others," he said in an exclusive interview with Ecns.cn at the Tech Crunch Beijing summit on Monday. "It will be the next disruptive point in the smart phone industry."
The phone became a hot topic after Russian President Vladimir Putin gave a YotaPhone 2 to Chinese President Xi Jinping as a state gift at the APEC summit in Beijing last year.
The phone includes a dual screen – a regular one and an e-ink reader with an always-on display on the back.
"My business philosophy is that technology should work for people, not the other way around," Martynov said. "I don't like my son glued to his phone on his first date. I don't like my eyes being hurt by the screen. I don't like to wake up my phone every couple of minutes and click multiple times to access information."
Martynov said technology should anticipate what people need. He used a metaphor that if one drops a napkin in an upscale restaurant, the waiter should be able to pick it up without anyone noticing.
In China, the YotaPhone is benefitting from the novelty. On Tmall.com, a major online retail platform in China, buyers of YotaPhones have left comments such as "Wow. I'm using the same phone our President uses," or "friends say I'm cool."
"I think phones are an extension of people's personalities, and as something unique, the YotaPhone allows them to express themselves," Martynov said. He added that major phone makers in the world are only upgrading their hardware, making the devices bigger or cheaper, instead of really innovating.
China to be the biggest market
Martynov said China is the number one priority market for YotaPhone. The country is already the second largest market, behind Russia.
"The Chinese market is so huge that even a small percentage means big units. It's relatively easy for newcomers, as Chinese people are more tolerant to new brands."
Martynov also spoke highly of China's entrepreneurial environment and the potentially huge amount of capital.
"The cooperation with China is very complementary. Russia has good innovations and engineers, while China has the market and capital. With China's One Belt One Road Initiative, it needs real business along the road or on the borders."
Martynov said he's satisfied with the sales volume since the first release of the YotaPhone 2 in China this May, although he declined to share the specific number.
"It's important that we gained hundreds of thousands of ambassadors to promote the YotaPhone in China," he said, adding that YotaPhone 2 is still a niche product.
Martynov said the company is seeking financial resources to fuel the global expansion of the YotaPhone 3, which is expected to be released in the middle of next year.
In October, Telconet Capital, one of its shareholders, signed an agreement to sell its stake of 64.9 percent to Hong Kong-based REX Global Entertainment Holdings Ltd. The remaining shares will be owned by Russian state corporation Rostec (25.1 percent) and Yota management (10 percent), according to media reports.
Also in October, Yota Devices struck a deal with OED Tech in Harbin, to cooperatively develop the next version of e-ink display.
The company also has teamed up with sub-branches of Chinese manufacturer ZTE Corporation (ZTESC and X&F) in September to mass produce the YotaPhone 3.
For a price-sensitive market like China, a price tag of 4,888 yuan ($788) for a YotaPhone 2 has become a major complaint on Tmall. It's higher than the mid-priced Samsung or Huawei models, and much higher than cheap alternatives such as Xiaomi. But Martynov said the value justifies the price.
"Nobody can do a lot of things we can do," he said.
Mr. Martynov was invited by Tech Crunch China to speak about innovation at a panel on Monday.
