Motorola
Founded in 1928 and headquartered in Schaumburg, Illinois, Motorola, Inc. (NYSE:MOT) engages in the design, manufacture, marketing, and sale of mobility products worldwide. The company offers its products through direct sale, distributors, dealers, and retailers. Motorola is the #2 manufacturer of wireless handsets and generates nearly 60% of sales through the manufacture and sales of wireless handsets and related products. Its largest customers include wireless carriers Sprint Nextel (11% of revenues), AT&T Mobility (formerly Cingular), China Mobile, América Móvil, and T-Mobile. About one-third of the unit's net sales are through third-party distributors and retailers. It made several acquisitions in 2006 in an effort to expand its product lines. The company's reorganization included selling some IT services units, shifting some production to contractors, and using extensive layoffs to reduce costs, and the highly publicized spin off of its semiconductor unit. Motorola is leading in the drive to create mobile communications that cross multiple technologies such as cellular, passive optical networks (PONs), and wireless broadband.
Business Units
Connected Home Solutions offers various broadband products, high speed data products, hybrid fiber coaxial network transmission systems, digital satellite program distribution systems, direct-to-home satellite networks and private networks for business communications, and video communication products.
Mobile Devices offers wireless handsets with related software and accessory products. This segment develops its products using GSM, CDMA, iDEN and 3G technologies.
Networks & Enterprise provides wireless communications systems for government and public safety markets; business wireless devices, networks, and applications for enterprise organizations; and electronics.
In the news
23FEB2007 - The current fiscal year consensus EPS estimate for this stock has changed from 1.11 to 1.10. For details, go to http://quicktake.morningstar.com/Stock/earningsestimates.asp?Symbol=MOT
13FEB2007 /PRNewswire-FirstCall/ - 3GSM World Congress 2007 - Motorola, Inc. today announced that it has deployed Wateen Telecom's WiMAX network in 17 major cities across Pakistan, including Islamabad, Karachi and Lahore. The two companies have also carried out end- to-end voice and data calls over the network.
12FEB2007 /PRNewswire-FirstCall/ - 3GSM World Congress 2007 - Motorola, Inc. today announced its new Phone-based Navigation System T805 and Smartphone-based Navigation System T815, both featuring Motorola's new MOTONAV solution. The T805 and T815 Navigation Systems with MOTONAV easily turn compatible Bluetooth® enabled handsets into ultra-portable GPS navigation devices. The GPS receiver establishes a connection via Bluetooth wireless technology to a compatible mobile phone through automatic pairing, eliminating the need for complicated device discovery or pin-number entry.
09FEB2007 (Dow Jones) - The world's top cell phone makers, locked in fierce competition for new customers, are shuffling their chip suppliers. Nokia Corp. and Motorola Inc. have struck new agreements in recent weeks as they look to cut production costs and cram more features into their handsets. Also changing the supply dynamic is the push by handset makers to capture more market share of low-end phones sold in China, India, and Brazil. "They'll shop around. If they can buy a chip for three cents cheaper, they switch in mid-production of a phone if they can," said Allen Nogee, principal analyst at In-Stat, a technology market researcher. "They want flexibility."
29JAN2007 - The next fiscal year consensus EPS estimate for this stock has changed from 1.36 to 1.33. For details, go to http://quicktake.morningstar.com/Stock/earningsestimates.asp?Symbol=MOT
Top Competitors
Ericsson - world's leading maker of wireless telecom infrastructure equipment
Nokia - world's #1 maker of cell phones
Sony Ericsson Mobile - joint venture between Sony and Ericsson combines their cellular phone operationsCatapillar
Sources: Company website, Morningstar.com, Yahoo! Finance, and Hoovers.com