Once “fallen off” due to slow transition, Motorola “empire” has now transformed strongly thanks to changing business direction, after abandoning products that have become legendary in the mobile world. dynamic
From the US telecommunications empire to a painful horse fall
Before Nokia phones were popular, Motorola stormed the mobile phone market. Motorola used to be one of the leading companies in the mobile phone market in the early twenty-first century. But slow in improving technology and slow in “catching waves” in the market, Motorola and Nokia gradually disappeared in the mobile phone market.
Thought Motorola would accept its fate, but no, the mobile phone “empire” once again rose strongly.
Motorola began in 1928 in Chicago, Illinois as Galvin Manufacturing Corporation. With a history of nearly 90 years, Motorola has broken the mobile phone market with legendary names such as StarTAC, Razr, Moto G, etc. In which, the StarTAC folding phone series has become a legend of the phone generation. mobile before smartphones. Along with that, the 2004 Motorola Razr model is considered one of the most successful phone models in history. The Razr has been the best-selling phone model in the world for almost 3 years.
In its heyday, it was no exaggeration to say that Motorola was a monument to mobile phones. Motorola’s phones used to be icons of fashion and class.
However, before the entry of Apple and Samsung, Motorola gradually weakened and its share in the mobile phone market decreased. In 2006, Motorola’s mobile phone market share was around 21% but this number dropped to 12% by the end of 2007. By 2009, Motorola’s share of the market was only 9%.
Despite trying to get back into the race with the Motorola Droid, which won the title of “phone of the year” in 2009, Motorola has not been able to return to the throne. The constant pressure from rivals such as Apple, Samsung, and Blackberry is so great that Motorola’s “monument” gradually disappears in the mobile phone market.
The most successful “transformation” story in the technology village
Aware of the imminent danger of collapse, Motorola CEO Greg Brown made a bold decision. Motorola was split into two independent companies: Motorola Mobility (which includes mobile phones and set-top boxes) and Motorola Solutions (which focuses on communications technology for police, fire departments, and equipment). networked).
In 2012, Motorola sold the mobile business to Google, and in 2014, Google sold it to Lenovo.
Throwing away the product line that used to be the legend that made its name, Motorola turned to the police radio segment. Mass shootings and rising crime rates have created a lucrative market for Motorola, helping the brand “reposition” itself in the US market.
Fortune predicts Motorola’s total revenue in 2023 to be about $ 10 billion, of which 75% of revenue comes from public services such as police departments, fire departments, and emergency call centers in the US.
Motorola’s fastest growing segment is its line of security products for hospitals, event venues and schools. The biggest advantage of the Motorola camera system is that it is connected to the AI software. As a result, Motorola cameras can observe sensitive areas, detect themselves and issue warnings if unusual activity is detected.
Many other types of cameras simply record video and the video is played back only after something bad happens. But Motorola’s security camera is different, it can be seen as a hedge against risks in crowded places, Motorola’s chief technology officer said.
In addition to the camera, another Motorola product, the M500 – the latest security system with a monitoring and control network that connects centrally with police patrol cars is also noticed. Motorola’s M500 is equipped with a camera to automatically detect dangerous, armed criminals approaching police patrols. In addition, it is also integrated with AI to automatically call the police or connect to the US 911 emergency switchboard.
Resurrected from the ashes
Since moving into the new field, Motorola has really revived. Motorola’s sales went from $5.6 billion in 2015 to nearly $10 billion in 2022. Last year, when many tech giants struggled because of the economic downturn, Motorola still made a profit of 1.3. billion USD. As of early June this year, Motorola’s market capitalization reached about $48 billion. Over the past five years, Motorola’s stock price has increased by nearly 150% – a number that even Google or Amazon must dream of.
Motorola’s revival story is considered a miracle in the technology village. Although it has made mistakes in the past, accepting the truth and not living in the glory of the past helps Motorola rise from the ashes.