Motorola is one of the renowned manufacturers of telecommunication equipment and mobile phones. Founded in 1928 by Paul Gavin, Motorola was the developer of the first commercially successful car radio. Up until 1998, the company primarily engaged in the manufacturing of radio-related equipments, walkie-talkies, defense electronics, and televisions. Then in early 2011, the company split into two different companies in the name of Motorola Mobility and Motorola Solutions.
Up until split up, Motorola designed, developed, and manufactured tablet computers, mobile phones, smart phones, two-way radios, networking systems, cable television systems, wireless broadband networks, and RFID systems. Analysts state the split up was due to Motorola’s inability to compete with the likes of Apple, Nokia, Samsung, LG, and other telecommunication device manufacturers. The split up was furthered fueled by the economic recession of the 2008 during which time the spin-off was actually announced, but was effective from January 2011.
After split-up, Motorola Mobility functioned as a separate public company and was listed on New York Stock Exchange under the symbol ‘MMI’. The company focuses on the manufacturing and marketing of mobile phones, smart phones, cable modems, and set-top boxes. Motorola Mobility designs and supplies set-top boxes and DVRs for Verizon’s flagship digital TV service Verizon FiOS TV. In November 2011, Google and Motorola Mobility entered into merger agreement. According to the agreement, Google offered $40 per share to Motorola Mobility’s shareholders with a total transaction value of $12.5 billion. Analysts stated that the acquisition was a result of immense pressure on Google to protect its promising Android franchise from legal challenges.
Motorola Mobility’s product portfolio comprises of mobile phones, accessories, cordless phones, home digital video, remote access software, tablets, DSL modems & gateways, phone software, and home networking products. Motorola Mobility has overseas operations in North America, Latin America, Europe, and Asia Pacific. Google stated that Motorola Mobility would continue to operate as a standalone company.
Motorola Solutions is the other company which was formed as a result of the split up. The company was formed in 2011 and is headquartered in Schaumburg, Illinois, United States. It operates in two divisions: Enterprise Division and Government Division. The Enterprise division focuses on the development of wireless infrastructure, bar code scanning, two-way radios, wireless broadband networks, and RFID solutions. The Government division focuses on the development of analog & two-way radios, mobile computing, voice & data communication equipments, and Wireless LAN securities, among others. As of 2011, the company employed about 23,000 people and reported revenues of about $8 billion.
The split-up of Motorola has certainly helped to diversify its business and also focus on niche market areas. Even though the company has split-up into two separate companies, the brand recognition and reach of Motorola brand name still lives on and certainly will for many years to come. As a testament to this, the Motorola Xoom tablet device has hit worldwide markets garnering rave reviews. The legacy created by Motorola in the telecommunication market will survive the tough market competition for decades to come.