Full Description

Motorola, Inc. (Motorola) is engaged in providing technologies, products and services for mobile phones. The Company’s portfolio includes wireless handsets, wireless accessories, digital entertainment devices, wireless access systems, voice and data communications systems, and enterprise mobility products. The segments of the Company include Mobile Devices Segment (Mobile Devices), Home and Networks Mobility Segment (Home and Networks Mobility) and Enterprise Mobility Solutions Segment (Enterprise Mobility Solutions). In November 2008, Satyam Computer Services Ltd. announced the take over of the Company’s software development centre in Malaysia. In April 2009, the Company completed the sale of its biometric business unit, including the Printrak trademark, to Safran SA, through its wholly owned subsidiary, Sagem Securite.

Mobile Devices Segment

The Mobile Devices business designs, manufactures, sells and services wireless handsets with integrated software and accessory products, and licenses intellectual property. The wireless subscriber products include wireless handsets with related software and accessory products. It also markets the products globally to carriers and consumers, through direct sales, distributors, dealers, retailers and, in certain markets, through licensees. During the year ended December 31, 2008, the segment’s net sales represented 40% of the Company’s consolidated net sales.

The Mobile Devices business also sells products through a variety of third-party distributors and retailers, which accounted for approximately 24% of the segment’s net sales. Under this segment the Company competes with Nokia, Samsung, LG and Sony-Ericson.

Homes and Networks Mobility Segment

The Home and Networks Mobility business designs, manufactures, sells, installs and services, which includes digital video, Internet protocol (IP) video and broadcast network interactive set-tops (digital entertainment devices), end-to-end video delivery systems, broadband access infrastructure platforms, and associated data and voice customer premise equipment (broadband gateways) to cable television and telecom service providers. It also includes wireless access systems (wireless networks), including cellular infrastructure systems and wireless broadband systems, to wireless service providers. In 2007, the segment’s net sales represented 33% of the Company’s consolidated net sales.

In the home business, the segment is a provider of end-to-end networks used for the delivery of video, data and voice services over hybrid fiber coaxial (HFC) networks, digital subscriber line (DSL) and passive optical networks (PON). The product portfolio of the Company includes moving picture experts group (MPEG) video encoding equipment for standard-definition and high-definition television (HDTV or HD); video processing and multiplexing systems; and video-on-demand, switched digital video and conditional access solutions used by network operators and programmers to deliver video programming. It also provides a range of digital entertainment devices supporting analog, digital and IP video delivery, including HD and digital video recording (DVR) (HD/DVR) applications.

In the networks business, the segment provides end-to-end cellular networks, including radio base stations, base station controllers, associated software and services, application platforms and third-party switching for code division multiple access (CDMA), global system for mobile communications (GSM), integrated digital enhanced network (iDEN) and universal mobile telecommunications system (UMTS) technologies. The segment also offers a portfolio of WiMAX products to create mobile IP broadband access.

The Company competes with Ericson, Nokia-Siemens joint venture, Alcatel-Lucent, Huawei and Motorola.

Enterprise Mobility Solutions Segment

The Enterprise Mobility Solutions designs, manufactures, sells, installs and services analog and digital two-way radio, voice and data communications products and systems for private networks, wireless broadband systems and end-to-end enterprise mobility systems to a range of enterprise markets, including government and public safety agencies, as well as retail, utility, transportation, manufacturing, healthcare and other commercial customers. In 2008, the segment’s net sales represented 27% of the Company’s consolidated net sales.

The Enterprise Mobility Solutions segment provides mission-critical and commercial enterprise mobility networks, services, applications and devices. In the government and public safety market, the Company provides a portfolio of products and services that meet evolving public safety and security needs, including products based on both terrestrial trunked radio (TETRA) and Association for Public Safety Communications Officials (APCO 25). The products of Motorola includes two-way radios, mobile computing products, advanced data capture products including barcode scanners and imagers, radio frequency identification (RFID) infrastructure, software management, security tools and wireless infrastructure. The segment’s products and services are sold through Motorola’s direct sales force and through independent and authorized distributors, dealers and resellers, independent software vendors, original equipment manufacturers, and service operators. The segment also provides systems engineering, installation and other technical and systems management services to its customers.

The Company competes with M/A-Com, EADS, Kenwood, EF Johnson and Cisco.