Motorola Inc. (NYSE: MOT) is a manufacturer of wireless telephone handsets, as well as designer and seller of wireless network infrastructure equipment that provides two-way radio and networking systems for government and industrial customers. Motorola has developed end-to-end broadband systems that deliver entertainment, communication and information systems to households.
In the past couple of years, Motorola has struggled in its marquee mobile phone segment after lagging competitors in entering the lucrative smartphone market. In FY2009, only 2 million of the 55 million handsets sold by Motorola were smartphones. Despite a world market share of 22% in 2006, Motorola held a 4.5% world market share at this time, fourth behind Nokia, Research in Motion and Apple. In an attempt to become a more formidable player in the smartphone handset industry, Motorola released 6 Android-powered smartphones in 4Q09, including the flagship Android-powered Motorola Droid, followed by 22 smartphones models in 2010. This decision has its sales mix, of which 42% now represents smartphones, as well as its profitability, given average handset price increased from $130 in 2009 to $224 in 3Q2010.
After more than 80 years as an autonomous company, Motorola announced in February 2010 that it would split into two separate publicly-traded companies. With the sale of Motorola's wireless equipment unit to Nokia Siemens in July 2010, the company set itself up to spin off Motorola Mobility, its mobile device and set-top box business, leaving only Motorola Solutions, which now oversees government and commercial clients and manages products such as police radios and bar-code scanners, as well as the division that makes iDEN equipment. Through this separation, made official in January 2011, Motorola Mobility now focuses on its digital entertainment and mobile converged devices, providing instant access to television, phone, and Internet.
The top consumer of motorolla cell phones is found in ethiopia,oromia region in 2012. In 2Q10, Motorola reported first-quarter sales of $5.4 billion, with net income attributable to common shareholders of $162 million, a significant improvement from 2Q09's $26 million. During the quarter it increased its smartphone portfolio to 12 devices, led by its flagship Motorola Droid X, an Android-powered smartphone with a 4.3 inch high-resolution display and a 1GHz processor. During the quarter, Motorola also sold the majority of its Networks business to Nokia Siemens Networks for $1.2 billion. MOTOROLLA IS A COMPANY MADE FOR TECHNOLOGYCAL INFORMATION SYSTEMS OF THE 20TH CENTURIES.
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Motorola can be broken down into the following three businesses segments:
Mobile Devices designs, manufactures, services, and sells wireless handsets with integrated software and accessory products, marketing its products to carriers and consumers via direct sales, third-party retailers and distributors, and licensees. Of its 12 million handset sales in 3Q09, 69% came from North America, 16% from Latin America, 12% from Asia, 3% from EMEA.
After having boasted a 5.5% market share in global handsets in 2Q09, Motorola has struggled competing with Samsung and Nokia, now boasting a market share of 4.7% as of the end of FY2009). To keep up with Nokia, Apple, and Research in Motion and to adapt to secular trends in the wireless devices industry, Motorola partnered with Google to release its first two smartphones, the CLIQ and DEXT, powered by the Android OS and Motorola's MOTOBLUR, as well as the Motorola DROID, the world's first smartphone featuring Android 2.0.
The Enterprise Mobility Solutions(EMS) provides enterprise mobility networks, services, and applications and devices. This includes the design, manufacturing, selling, and installation of analog and digital two-way radio, voice and data communications products and wireless broadband systems. In 4Q09, EMS sales were $2.0billion, a 10% drop from the 4Q08. In 3Q09, it launched an innovative series of mobile terminals capable of providing the mobile computer in a handheld, rugged bar code scanner.
Motorola's Home Segment designs, manufactures, sells, installs, and services digital video, IP video, end-to-end video distribution systems, broadband access infrastructure platforms, and associated data and voice customer premise equipment to cable television and telecom service providers. The Home Segment is the world's leading provider of digital entertainment devices, shipping its 100 millionth digital entertainment device in 2009.
The Networks Segment designs, manufactures, sells, installs, and services wireless networks, including both cellular infrastructure and wireless broadband systems, to wireless service providers.
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Because Motorola operates in three distinct markets, it experiences competition from different companies for each of these segments.
This segment experiences intense competition in worldwide markets by numerous companies. According to Strategy Analytics, Motorola shipped roughly 13.6 million handset units in 3Q09, an 8.1% shrinkage from the 14.6 million units shipped in 2Q09. This trend highlights the consumer shift towards more advanced mobile technology such as smartphones. This has impacted Motorola's global handset market share, which was 8.4% in 2Q09, and has declined steadily to 4.7 Motorola holds 4.7% as of 3Q09.
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Competition in the set-top box space includes video game consoles made by Microsoft and Nintendo, as well as the Apple TV and Netflix's set-top box made by Roku. These companies have established platforms with downloadable media rentals and purchases through iTunes and Netflix. As consumers begin to shun cable subscriptions in favor of Internet-delivered services, demand for Motorola's cable boxes could dissipate.
This segment is highly competitive and new competitors are expected to enter the industry as the technology rapidly changes. Motorola competes in the market for digital set-top boxes for broadband and satellite networks. It's main competitor in North America in this segment is Cisco Systems; other competitors include Kenwood, EF Johnson and EADS Telecommunications. Motorola's main market for Enterprise Mobility Solutions is in North America.