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Motorola Mobility

Motorola Mobility Holdings, LLC
TypeWholly owned subsidiary
IndustryTelecommunications equipment
FateAcquired by Google
Predecessor(s)Motorola, Inc.
FoundedJanuary 4, 2011
HeadquartersLibertyville, Illinois, U.S.
Key peopleDennis Woodside (Chairman and CEO)
ProductsMobile phones, smartphones, tablets, cable modems, set-top boxes
Employees16,317 (Q4 2012)[1]
ParentGoogle
Websitewww.motorola.com/mobility

Motorola Mobility LLC is an American telecommunications equipment corporation owned by Google and headquartered in the Chicago suburb of Libertyville, Illinois.

It was formerly Motorola's cellular phone division, which was called the Personal Communication Sector (PCS) prior to 2004. It pioneered the flip phone with the StarTAC in the mid-1990s. Motorola had a commanding lead in the analog cellphone market, but it was slow to embrace digital technology. By the turn of the 21st century, it produced another successful product, the (original) Razr, a very thin flip phone. Most recently it has produced smartphones and tablets using the Google Android operating system. On January 4, 2011, the cellular division was spun off into a separate company as Motorola Mobility, while the remainder of the company was renamed Motorola Solutions, Inc.

On August 15, 2011, Google Inc. announced that it had agreed to acquire the company[2] for US$12.5 billion.[3] The acquisition included a sizeable portfolio of patents owned by Motorola.[4] On February 13, 2012 Google received final approval from the United States Department of Justice and the European Union.[5] On 19 May 2012, the People's Republic of China also approved the merger for $12.5 billion, making it the last major trading commission to approve the merger. The merger was completed on May 22, 2012.[6]

Contents

History

Main article: Motorola

Motorola Mobility was formerly known as the Mobile Devices division of Motorola until it was spun off as a separate entity in January 2011. Motorola Mobility consists of the Mobile Devices business which produces smartphones and the Home business which produces set-top boxes, end-to-end video solutions, and cable modems.[7]

Resurgence

In 2002–2003, Motorola's Mobile Devices department reinvented itself. Three areas of significant improvement were user friendliness, design and brand. Motorola started paying more attention to the user experience, and models such as the v300, v400 and v600 (called the triplets) were among the devices that were easy to use. Besides ease of use, Motorola also stressed design and brand image. The result of the focus in these aspects led to the Razr V3.

  • Motorola RAZR V3.
    Product of 2003

  • Motorola RIZR Z8 Smart Phone, based on UIQ OS and a slide kick platform.
    2007

  • Motorola Droid. Second Android phone manufactured by Motorola (the first was the Motorola Cliq).
    2009

  • Motorola Milestone XT720 and the box.
    2010

  • Motorola Defy runs under Android 2.3.6.
    2010

  • Motorola Razr Maxx
    2012

Spinoff from Motorola

The division began trading as a separate independent company on January 4, 2011.[7]

Acquisition by Google

On August 15, 2011, months after Motorola Mobility was spun off into an independent company, Google announced that it would acquire Motorola Mobility for $12.5 billion,[8][9] subject to approval from regulators in the United States and Europe.

The acquisition viewed as Google being a white knight, since Motorola just had its fifth straight quarter of losses.[10] In a post on Google's blog, Google Chief Executive Officer and co-founder, Larry Page, revealed that Google's acquisition of Motorola Mobility is a strategic move to strengthen Google's patent portfolio, as Motorola Mobility has 17,000 patents with 7,500 more patents pending.[11]

Google's Android operating system has recently come under fire in an industry-wide patent battle,[12] in which Android manufacturers HTC, Motorola, and Samsung have been sued for alleged patent infringement,[2] by Microsoft, Oracle and Apple.[13] The Motorola Mobility acquisition is considered a means of protecting the viability of Android. Google has stated that it will run Motorola as an independent company.[14] On November 17, 2011, Motorola announced that its shareholders voted in favor of the company's acquisition by Google Inc. for $12.5 billion, receiving approval from the United States Department of Justice and the EU on February 13, 2012.[5] The deal received subsequent approval from Chinese authorities and was completed on May 22, 2012.[15] Alongside the completion of the acquisition, Motorola Mobility's CEO, Sanjay Jha, was replaced by Dennis Woodside, formerly a Google Senior Vice President.[16]

On 13 August 2012, Google announced that it would cut 4000 employees and close one third of the company's locations, mostly outside the United States.[17]

Despite its close partnership and then takeover by Google, Motorola has still struggled to release Android 4.0 upgrades to many of its existing devices.[18]

On 19 December 2012, it was announced that ARRIS and Motorola Mobility, a Google subsidiary, had entered into a definitive agreement under which ARRIS would acquire the Motorola Home business from Motorola Mobility, for $2.35 billion in a cash-and-stock transaction approved by the Boards of Directors of both companies.[19]

Google CFO Patrick Pichette said that consumers would have to wait until the second half of 2013 for any exciting products from Motorola Mobility.[20]

Products

Razr

In development since July 2003, Motorola released the Razr V3 in the third quarter of 2004.[21] Because of its striking appearance and thin profile, it was initially marketed as an exclusive fashion phone,[22] but within a year, its price was lowered and it was wildly successful, selling over 50 million units by July 2006.[23] Over the Razr four-year run, Motorola sold more than 130 million units, becoming the best-selling clamshell phone in the world.

Motorola released other phones based on the Razr design as part of the 4Ltr line. These include the Pebl U6, Slvr L6, Slvr L7 (more expensive variant of Slvr L6), Razr V3c (CDMA), Razr V3i (with upgraded camera and appearance), V3x (supports 3G technology and has a 2 MP camera), Razr V3xx (supports 3.5G technology) and Razr maxx V6 (supports 3.5G technology and has a 2 MP camera) announced on July 2006.

The Razr series was marketed until July 2007, when the succeeding Motorola Razr2 series was released. Marketed as a more sleek and more stable design of the Razr, the Razr 2 included more features, improved telephone audio quality, and a touch sensitive external screen. The new models were the V8, the V9, and the V9m.[24] However, Razr2 sales were only half of the original in the same period.[25]

Because Motorola relied so long upon the Razr and its derivatives[26][27] and was slow to develop new products in the growing market for feature-rich touchscreen and 3G phones,[28] the Razr appeal declined while rival offerings like the LG Chocolate, BlackBerry, and iPhone captured consumer attention, leading Motorola to eventually drop behind Samsung and LG in market share for mobile phones.[29] Motorola's strategy of grabbing market share by selling tens of millions of low-cost Razrs cut into margins and resulted in heavy losses in the cellular division.[27][30]

Motorola capitalized on the Razr too long and it was also slow adopting 3G. While Nokia managed to retain its lead of the worldwide cellular market, Motorola was surpassed first by Samsung and then LG Electronics.[31][32] By 2007, without new cellphones that carriers wanted to offer, Motorola sold tens of millions of Razrs and their offshoots by slashing prices, causing margins to collapse in the process.[33]

In January 2007, then-CEO of Motorola Ed Zander rode a yellow bike onto the stage in Las Vegas for his keynote speech at the Consumer Electronics Show.[34] Instead of developing new and exciting products, Motorola placed Razrs into colored lingerie (red in February for Valentine's Day) while Apple unveiled the revolutionary new iPhone.[35] Under Zander, [the executive who was responsible for the successful Razr departed for Dell Inc., while his successor failed to turn around the struggling mobile handset division.[32][not in citation given]

Motorola continued to experience severe problems with its cellphone/handset division in the latter-2000s, recording a record $1.2 billion loss in Q4 2007.[36] Its global competitiveness continued to decline: from 18.4% market share in 2007, to 9.7% by 2008. By 2010, Motorola's global market share had dropped to seventh place, leading to speculation of bankruptcy of the company.[37] While Motorola's other businesses were thriving, the poor results from the Mobile Devices Unit as well as the 2008 financial crisis delayed the company plans to spinoff the mobile division.[38]

Android range

Sanjay Jha took the reins of Motorola's Mobile Devices Unit. Motorola's biggest customer Verizon Wireless needed a competing product since AT&T Mobility had an exclusive deal to carry the iPhone. After the Windows Mobile was delayed, Jha settled on Google Android as the operating system for all subsequent Motorola phones.[39][40]

Motorola shifted its Operating systems from their proprietary software to Google's Android operating system and in October 2009, Motorola announced a forthcoming smartphone named "Droid" that launched on the Verizon network on November 6, 2009.[41] "Droid" was a major success for Motorola Mobile Devices.[42] It received the "Time Gadget of the Year" award in 2009.[43] In 2010, Motorola launched "Droid X" and "Droid 2". Droid X was again a major success, which has helped Motorola to regain much of its market share in the US.[44]

Atrix 4G, Droid Bionic, XOOM, & Droid RAZR

On January 5, 2011, Motorola Mobility announced that the Atrix 4G and the Droid Bionic were headed to AT&T and Verizon (respectively), with expected release dates in Q1 of 2011. The Atrix was released on February 22 as the world's first phone with both a Dual-Core Processor and 1GB of RAM.[45][unreliable source?] The phone also had optional peripherals such as a Multimedia Dock and a Laptop Dock which launched a Webtop UI.[46][not specific enough to verify] On February 24, two days after the release of Atrix, the company released Motorola Xoom, the world's first Android 3.0 tablet,[47][unreliable source?] and followed it up shortly afterwards with an update to make it the world's first Android 3.1 tablet.[48]

In the fourth quarter of 2011, Motorola unveiled the Droid RAZR, the world's thinnest 4G LTE smartphone at that time with just 7.1mm of thickness. The Droid Razr featured Kevlar backing, the same used in bulletproof vests, and a Gorilla Glass face-plate.

Though Jha managed to restore some of the lost luster to Motorola Mobility, through its last years as a division and then as an independent company, it still struggled against Samsung and Apple.[40] Even among Android manufacturers, Motorola had dropped behind Samsung, HTC, and LG in Q2 of 2011. This may have been attributed to the delay in releasing 4G LTE capable devices, as well as setting the prices of its new products too high.[11]

Competitors

See also

  • iDEN
  • WiDEN
  • Daftar/Tabel -- Motorola products
  • Motorola Solutions

References

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