Motorola Formally Spins-Off Mobility Business


After the initial announcement in 2008, Motorola Inc, has formally completed the division of the company into two separate entities, Motorola Mobility and Motorola Solutions. While Motorola Mobility, will focus on the consumer mobile phone and digital set-top-box business, Motorola Solutions will take care of the enterprise and government front with communication, public safety (two-way radios) and data capture technology solutions.

Sanjay Jha will continue to be the CEO of Motorola Mobility, while the Solutions arm will be headed by Greg Brown. Motorola Solutions will use the original blue colored Motorola logo, while Mobilty will sport a red logo.

According to The Chicago Sun Times, Motorola Mobility will start as an $11 billion to $12 billion company. Motorola globally shipped 9.1 million handsets including 3.8 million smart phones in Q3 2010, generating a sales of $2 billion marking a 20% growth against its Q3 2009 sales. It also generated $900 million from its home products division which makes digital set top boxes.

Riding The Android Wave

After a major decline in its market share in 2007-08, the company did see some positive signs after riding the Android bandwagon with the launch of its Droid smart phone in the US. A market study by mobile and wireless research firm iSuppli shows that although Motorola faced stiff competition from Apple’s iPhone and RIM’s BlackBerry mobile platforms, and from Samsung and HTC who also made Android based devices, it did see a steady growth in terms of sales and market share.

Motorola registered an increase of 12.5% in its Q2 2010 market share compared to the same quarter in 2009. It has seen growth in every quarter in its market share after the Q2 2009 outgrowing the overall rate of growth of the global smartphone market. However, compared to HTC and Samsung, who experienced sequential growth of 63.1% and 55.6% in Q2 2010, this growth does not seem to be very significant.

It can be clearly seen that Motorola’s revival is mostly due to the adoption of the Android platform and the marketing muscle of US carrier Verizon which offers Motorola’s Droid range of smart phones on its network. By separating its mobility business, Motorola can focus on product innovation and design in a better way and repeat the succes of its RAZR and Droid phones. The key challenge for the company now is to differentiate its Android offerings from other players like HTC, Samsung and even lesser known Asian and Indian players like Huawei and Micromax.

Launch Of The Xoom Tablet

Motorola is also exploring the Tablets segment and has announced the Xoom tablet at CES, Las Vegas, which will be based on Android 3.0 or Honeycomb, the tablet optimized version of Google’s mobile OS.

The 10.1 inch tablet is powered by a dual core processor, supports HD video and has a front camera for video chat. The 3G/Wifi version of the tablet will be launched in Q1 2011 exclusively on US carrier Verizon and a 4G version will be introduced in the second quarter. Complete specs and info in the Press Release

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