- FingerMotion launched its mobile device protection service on July 15, 2022, banking on the transition to and the proliferation of 5G within the Chinese market
- With the Chinese government targeting over 2 million 5G base stations by the end of the 2022 calendar year, FingerMotion is counting on consumers’ switch from 3G and 4G phones to 5G to grow its new product and market share as a whole
- Martin Shen, FingerMotion’s CEO, is confident that this new direction by the company will not only sustain but also supersede the previous years’ performance, having posted a 12% gross margin growth in 2022, up from 9% in the 2021 financial year
- He has reiterated that the company’s current revenue is “just the tip of the iceberg” and is confident that over the next 6-12 months, FingerMotion will achieve significant revenue growth
FingerMotion’s (NASDAQ: FNGR) latest offering, mobile device protection, launched on July 15, 2022, could not have come at a more opportune time. Mimicking Apple’s AppleCare service but specifically tailored for the Chinese market, FingerMotion sought to capitalize on a largely untapped market, previously limited to broken screen protection (https://ibn.fm/JIZUn).
FingerMotion, an evolving technology company with a core competency in mobile payment and recharge platform solutions, has always kept its ear on the ground and has never shied away from exploring new sectors to grow its market share and create value for its shareholders. This outlook has yielded four key offerings: telecommunications products and services, SMS and MMS services, big data insights, and Rich Communication Services (“RCS”).
Its latest addition acknowledges the changing consumer behavior and preferences, with many Chinese consumers switching up their older phones for newer ones, specifically those with 5G functionality.
“Now with the massive onset of 5G phones, there’s a really large market in China that’s looking to change up their phones for, let’s say, 3G and 4G phones to 5G,” noted Martin Shen, the Chief Executive Officer (“CEO”) of FingerMotion (https://ibn.fm/8PyCR).
FingerMotion is looking to bank on this transition and the proliferation of 5G to grow its new product. It believes that in doing so, it will grow its customer numbers and, more importantly, its gross margins, a key objective for the 2023 financial year.
In a report published by Open Gov Asia, China is targeting over 2 million 5G base stations by the end of the 2022 calendar year. So far, the country has already launched over 1.4 million base stations serving over 500 million users. The goal for the Chinese government is to have 26 5G base stations for every 10,000 people by the end of 2025, up from five base stations for every 10,000 people in 2020 (https://ibn.fm/E7LpM).
With over $900 billion in value added to the Chinese economy by mobile technologies and services, representing 5.6% of the country’s Gross Domestic Product (“GDP”), one would understand why the government is aggressively pushing for 5G infrastructure deployment. Most notably, this move to have 5G accessible to its citizens saw 285 million additional 5G connections in 2021 alone. For a nation where over 1 billion people use mobile internet services, FingerMotion recognizes a tremendous market opportunity for its new product (https://ibn.fm/jXa60).
Mr. Shen is confident that this new direction by the company will be integral to sustaining the previous years’ performance and superseding it. Gross margins growth in the 2022 financial year was 12%, with 2021 posting a 9% growth and is hopeful that over the next 6-12 months, FingerMotion will achieve significant revenue growth.
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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