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| Revision as of 12:12, February 15, 2011 (edit) 208.107.114.238 (Talk) (→Enterprise Mobility Solutions Segment (34% ($1.9 billion) of total sales for 2Q10)) ← Previous diff |
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| The Networks Segment designs, manufactures, sells, installs, and services wireless networks, including both cellular infrastructure and wireless broadband systems, to wireless service providers<ref name=09AR />. | The Networks Segment designs, manufactures, sells, installs, and services wireless networks, including both cellular infrastructure and wireless broadband systems, to wireless service providers<ref name=09AR />. | ||
| - | ==Trends and Forces== | + | A really hplufel review! I've been trawling youtube to try and find one that is actually decent and relevant to people who don't understand ridiculous technical code!The phone looks really good aswell- THANKYOU |
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| - | ===Overall Market Growth=== | + | |
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| - | Motorola's main customers for wireless handsets are companies that provide mobile phone service. The companies buy Motorola's handsets and resell them (often at a subsidized cost) to their cellular subscribers. Motorola's wireless handset sales are thus dependent upon the number of overall state of the mobile phone market. As of Q2 2008, Motorola had a 25.8% market share in the US handset market.<ref>[http://seekingalpha.com/article/91214-motorola-turnaround-in-progress?source=feed Seekingalpha.com, Motorola: Turnaround in Progress?]</ref> | + | |
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| - | Mobile handset sales have been growing at a rapid rate (close to 20%) during the last four years. Continued growth in this industry will be driven by demand from new subscribers in [[Mobile Phone Adoption in Developing Countries|emerging markets]] and replacement sales from the current subscriber base. However, growth in this industry is likely to slow down as markets becomes saturated. | + | |
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| - | ===Emerging Markets and the MotoFONE=== | + | |
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| - | Strong growth in emerging markets such as India and [[Mobile Phone Usage|China]] have contributed to the rapid growth of the overall market. Motorola currently trails [[Nokia]] in these markets. To increase their market share, Motorola has designed a sub-$50 cellphone called the MotoFONE. Analysts believe that if the MotoFONE is successful, Motorola could gain significant share from [[Nokia]] in the emerging markets. | + | |
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| - | ===Wireless Handset as Fashion Accessory=== | + | |
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| - | Because [[wireless handsets]] have become a fashion accessory, replacement sales are dependent on both [[U.S. Economic Cycles|economic conditions]] (an increase in disposable income will increase the number of elective handset replacements) and the ability of Motorola to create an attractive product. Motorola has done well in the past with popular products such as the RAZR phone, but must continue to produce new handset designs with attractive features. Currently all top five vendors of wireless handsets constantly come out with new models and new technologies. In addition to pressure from competitors products, any established phone model may saturate the market and experience a decline in sales. | + | |
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| - | ===Wide Customer Base=== | + | |
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| - | Motorola has several large customers, and the loss of any one of these customers could have an adverse effect on the company’s performance. Motorola’s largest end customers are [[Sprint Nextel]], [[China Mobile]], [[Verizon]], [[Cingular]] and [[T-Mobile]]. However, no single customer accounted for more than 10% of the company’s net sales. | + | |
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| - | ===Wireless broadband: WiMAX versus WCDMA Market Share=== | + | |
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| - | The wireless broadband market is currently split between two technology standards: [[WiMAX vs WCDMA|WiMAX and WCDMA]]. Currently WCDMA is more widely deployed than WiMAX. Motorola is the market leader in the WiMAX technology, but it only in 5th position for the WCDMA technology. Its competitors for WCDMA wireless broadband include [[Ericsson|Ericsson/Marconi]], [[Nokia]]/[[Siemens]], [[Alcatel-Lucent]] and [[Nortel]]. As with other instances of two directly competing standards, one of the standards is likely to eventually obtain complete market share. If WiMAX succeeds, Motorola will be well positioned in wireless broadband. On the other hand, if WCDMA succeeds, Motorola will be at a disadvantage as its market share is relatively small compared to its competitors (see graph). Motorola expects to release 5 3G handsets by the end of 2008. | + | |
| == Competition == | == Competition == | ||
Revision as of 22:09, March 18, 2012
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[1]. 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[2][3]. 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[4][5]. 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[6].
After more than 80 years as an autonomous company, Motorola announced in February 2010 that it would split into two separate publicly-traded companies[7]. 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[8][9]. 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[10][11].
Contents |
Company Overview
Business and Financial Metrics
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[12]. 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[12]. During the quarter, Motorola also sold the majority of its Networks business to Nokia Siemens Networks for $1.2 billion[12].
| Annual Financial Data, in millions[13] | FY2006 | FY2007 | FY2008 | FY2009 |
| Revenue | $42,879.0 | $36,622.0 | $30,146.0 | $22,044.0 |
| Gross Profit | $12,727.0 | $9,952.0 | $8,395.0 | $7.057.0 |
| Operating Income | $4,092.0 | $(553.0) | $(2,391.0) | $(148.0) |
| Net Income | $3,661.0 | $(49.0) | $(4,244.0) | $(51.0) |
Business Segments
Motorola can be broken down into the following three businesses segments:
Mobile Devices Segment (32% ($1.7 billion) of total sales in 2Q10)
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[14]. Of its 12 million handset sales in 3Q09, 69% came from North America, 16% from Latin America, 12% from Asia, 3% from EMEA[1].
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[15])[4]. 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[4].
Enterprise Mobility Solutions Segment (34% ($1.9 billion) of total sales for 2Q10)
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[14]. In 4Q09, EMS sales were $2.0billion, a 10% drop from the 4Q08[1]. In 3Q09, it launched an innovative series of mobile terminals capable of providing the mobile computer in a handheld, rugged bar code scanner[16].
Home Segment (16% ($886 million) of total sales for 2Q10)
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[17].
Networks (18% ($967 million) of total sales for 2Q10)
The Networks Segment designs, manufactures, sells, installs, and services wireless networks, including both cellular infrastructure and wireless broadband systems, to wireless service providers[17].
A really hplufel review! I've been trawling youtube to try and find one that is actually decent and relevant to people who don't understand ridiculous technical code!The phone looks really good aswell- THANKYOU
Competition
Because Motorola operates in three distinct markets, it experiences competition from different companies for each of these segments.
- Mobile Devices Segment
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[18]. 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[18].
| Global Handset Shipments (Millions of Units)[19] | 2008 | 4Q09 | 2009 | YoY Change |
| Nokia | 468.4 | 126.9 | 431.8 | -7.8 |
| Samsung | 196.6 | 69.0 | 227.3 | 15.6 |
| LG | 100.8 | 33.9 | 117.9 | 17.0 |
| Sony-Ericsson | 96.6 | 14.6 | 57.0 | -41.0 |
| Motorola | 100.1 | 12.0 | 55.1 | -45.0 |
| Others | 214.8 | 68.0 | 242.8 | 13.0 |
| Total | 1,177.3 | 324.4 | 1,131.9 | -3.9 |
| Global Handset Vendor Market Share (%)[18] | 2008 | 4Q09 | 2009 | YoY Change |
| Nokia (NOK) | 39.8 | 39.1 | 38.1 | -4.3 |
| Samsung | 16.7 | 21.3 | 20.1 | 20.4 |
| LG | 8.6 | 10.5 | 10.4 | 20.9 |
| Sony-Ericsson | 8.2 | 4.5 | 5.0 | -39.0 |
| Motorola | 8.5 | 3.7 | 4.9 | -42.4 |
| Others | 18.2 | 21.0 | 21.5 | 18.1 |
- Home and Network Mobility Segment
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[20]. As consumers begin to shun cable subscriptions in favor of Internet-delivered services, demand for Motorola's cable boxes could dissipate.
- Enterprise Mobility Solutions Segment
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.
References
- ↑ 1.0 1.1 1.2 "Motorola Announces Fourth-Quarter and Full-Year 2009 Financial Results" Motorola Investor Relations
- ↑ MOT 2008 10-K pg. 3
- ↑ "Motorola Decline May Not Be as Steep as Originally Predicted," Trefis Investment Research, November 23, 2010
- ↑ 4.0 4.1 4.2 Q3 "Motorola Reports Third-Quarter Financial Results," Motorola Investor Relations, 10/29/09
- ↑ "Motorola Droid Price Cut" 10/26/09
- ↑ "Motorola’s Smartphone Strategy Pays Off," Trefis Investment Research, November 3, 2010
- ↑ "Update-Motorola to Split into Two in 2011" Reuters News 02/11/10
- ↑ "Nokia Siemens to buy Motorola wireless gear unit," Yahoo! News, 07/19/2010
- ↑
- ↑ "Motorola Targets First Quarter 2011 to Separate into Two Independent, Publicly Traded Companies" PRNewswire, 02/11/10
- ↑ [1]
- ↑ 12.0 12.1 12.2 "Motorola Q2 2010: Earnings Conference Call," Motorola Investor Relations, 07/29/10
- ↑ "Motorola," Morningstar Investment Research
- ↑ 14.0 14.1 "Motorola: Full Description" Thomson Reuters
- ↑ "Motorola Reports Second-Quarter Financial Results" July 30, 2009
- ↑
- ↑ 17.0 17.1 "2009 Annual Report," Motorola Investor Relations, March 2010
- ↑ "Motorola's Strategy: Focus on the Core Business," SeekingAlpha, 01/22/10
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