Motorola

Motorola, Inc.
	File:Motorola logo.svg Logo used until 2011 split
Company type	Public
Industry	Telecommunications, Consumer electronics, Semiconductors
Predecessor	Galvin Manufacturing Corporation
Founded	1 January 1928; 98 years ago in Chicago, Illinois, United States
Founder	Paul Galvin, Joseph Galvin
Defunct	January 4, 2011
Fate	Split into Motorola Solutions and Motorola Mobility
Headquarters	Schaumburg, Illinois, United States
Area served	Worldwide
Key people	Greg Brown (CEO 2008–2011)
Products	Radio communication devices, cellular network infrastructure, mobile handsets, satellite communication devices, pagers, cable modems, semiconductors
Number of employees	93,000 (approximate in 2002)

Motorola, Inc. () was a multinational telecommunications corporation based in Schaumburg, Illinois, United States. Established in 1928 by siblings Paul and Joseph Galvin, the company adopted the Motorola brand name in 1947. It concentrated on manufacturing radio communication devices, including two-way radio systems, consumer walkie-talkies, cellular network infrastructure, mobile handsets, satellite communication devices, pagers, cable modems, and semiconductor components. After experiencing losses totaling $4.3 billion between 2007 and 2009, Motorola divided into two separate publicly traded entities on January 4, 2011: Motorola Solutions (the legal successor) and Motorola Mobility (spun off as a distinct company).

Motorola produced wireless networking hardware such as cellular base stations and signal boosters. Its clientele in business and government sectors depended on its wireless voice and broadband solutions to establish private networks and support public safety communications like Astro and Dimetra. The company’s home entertainment and broadcast offerings included set-top boxes, digital video recorders, and video broadcasting network equipment designed for high-definition television. Following the 2011 split, all these units except for set-top boxes and cable modems were incorporated into Motorola Solutions.

The mobile handset division, previously called the Personal Communication Sector (PCS), was a trailblazer in the cellular phone industry with groundbreaking products such as the first "brick phone" (DynaTAC), the "flip phone" (MicroTAC), and the "clam phone" (StarTAC) during the mid-1990s. Although Motorola saw a revival with the RAZR model in the mid-2000s, it lost significant market share later due to inconsistent product performance. Subsequently, the company transitioned its focus toward smartphones powered by Google's Android, debuting the Motorola Droid in 2009. This handset division was ultimately separated into Motorola Mobility.

History

Originally founded in Chicago, Illinois as Galvin Manufacturing Corporation in 1928, Motorola's name was created by Paul Galvin by merging "motor" (referencing motor cars) with "ola" (a popular suffix inspired by Victrola). The inaugural Motorola-branded car radio was introduced in 1930 at a price of $30. Owing to growing brand recognition, Galvin Manufacturing Corporation officially changed its name to Motorola, Inc. in 1947.

The company initially concentrated on car radios, targeting police departments and local governments within Illinois such as River Forest and Cook County Police. Its product line remained predominantly centered around radio technology—from battery eliminators to producing the world’s first handheld walkie-talkie in 1940. Over time, Motorola expanded its operations into defense electronics, cellular network infrastructure, and mobile telephony.

In 1940, Motorola launched its research division under Dan Noble, a pioneer in FM radio technology and semiconductors. During World War II, it manufactured the hand-held AM SCR-536 radio which played a vital role in Allied communications; Motorola ranked 94th among U.S. corporations awarded military production contracts.

The company went public in 1943 and by 1947 had shifted its primary focus to televisions and radios, setting the stage for its future expansion into consumer electronics and telecommunications sectors.

Post-World War II Developments

At its Quincy, Illinois facility, Motorola employed approximately 1,200 individuals who manufactured radio components catering to both residential and automotive sectors.

In 1969, during the landmark Moon mission, astronaut Neil Armstrong utilized a Motorola transceiver to maintain communication.

Motorola broke new ground in mobile communications by launching the first handheld portable phone in 1973. The company followed this innovation by releasing the 8-bit microprocessor MC6800 in 1974, which found applications across automotive, computing, and gaming industries. That same year, Motorola divested its television division to Matsushita (Panasonic).

The introduction of the 32-bit MC68000 microprocessor in 1980 significantly contributed to the expansion of prominent computing companies such as Apple, Commodore, and Hewlett-Packard.

In 1983, the Federal Communications Commission authorized Motorola’s DynaTAC 8000X, marking it as the first commercially available cellular phone worldwide. By 1998, mobile phones accounted for nearly two-thirds of Motorola’s total revenue.

Motorola’s acquisition of Storno in 1986 broadened its presence in Europe and diversified its product portfolio, including involvement with the Nordic Mobile Telephone (NMT) system and early stages of GSM technology development. This strategic expansion strengthened Motorola’s market position across European territories.

The sale of its Arcade, New York manufacturing site and related automotive product lines to Prestolite Electric occurred in 1988.

In 1996, Motorola ventured into the Macintosh clone market through the StarMax, produced under license from Apple. However, after Steve Jobs returned to Apple in 1997, licensing disagreements led to the contract’s termination and discontinuation of StarMax. This strained relationship resulted in Motorola’s temporary exclusion from the AIM alliance and a loss of PowerPC CPU production rights until they were reinstated in 1998.

Failure to adopt emerging digital cellular standards caused Motorola to lose its dominant position in handset market share during the late 1990s. By 1996, Ericsson surpassed Motorola in U.S. digital phone sales, and Nokia overtook it globally by 1998. These difficulties also affected Motorola’s semiconductor division and investments such as the Iridium satellite project.

To optimize its operations, Motorola divested segments of its semiconductor business in 1999, leading to the creation of ON Semiconductor based in Phoenix, Arizona.

Developments After 2000

By the year 2000, Motorola exhibited signs of recovery following an extended period of decline; however, it continued to incur losses on each handset sold, unlike its profitable competitor Nokia.

In June 2000, Motorola partnered with Cisco to launch the world's inaugural commercial GPRS cellular network for BT Cellnet in the United Kingdom and simultaneously developed the first GPRS-enabled mobile phone.

August 2000 saw Motorola acquire Printrak International Inc. for $160 million, obtaining computer-aided dispatch software and automated fingerprint identification technology. That same year marked a peak workforce size of approximately 150,000 employees globally; subsequent layoffs and divestitures reduced this figure to around 93,000 by 2002.

The handset division introduced "Hello Moto" as a marketing slogan in 2002, which became a hallmark of its brand identity.

In June 2005, Motorola acquired intellectual property assets from Sendo, along with associated manufacturing facilities.

The following year in June 2006, Motorola purchased the AJAR software platform from British company TTP Communications plc. Later that year, it announced plans for iRadio, a subscription-based music service intended to provide commercial-free streaming via broadband internet. Although designed to compete with satellite radio and digital platforms like Apple’s iTunes and iPhone services, iRadio was never commercially launched.

Greg Brown assumed the role of CEO in 2008. In October of that year, Motorola agreed to sell its Biometrics division—based in Anaheim, California—to French defense company Safran. The transaction was completed in April 2009, with the unit being integrated into Sagem Morpho (later rebranded as MorphoTrak).

Motorola's Division

On March 26, 2008, the board of Motorola approved a plan to split the company into two separate publicly traded entities, dividing Motorola Mobile Devices from Motorola Broadband & Mobility Solutions. Although the initial target for completion was mid-2009, the process was postponed due to restructuring difficulties and the economic downturn during 2008–2009.

On February 11, 2010, Motorola revealed intentions to create two independent public companies: Motorola Mobility, which would oversee mobile phones and cable equipment, and Motorola Solutions, concentrating on government and enterprise communication products. This separation was officially completed on January 4, 2011.

Subsequently, Google acquired Motorola Mobility on May 22, 2012. Later that year, in December 2012, Google sold its cable equipment segment to Arris Group and eventually transferred ownership of Motorola Mobility to Lenovo on October 30, 2014.

Company Divisions

At the time of the split, Motorola operated three main divisions:

Enterprise Mobility Solutions, headquartered in Schaumburg, Illinois, catered to government and public safety markets by providing analog and digital two-way radios, voice and data communication systems, mobile computing devices, wireless infrastructure, and RFID technologies worldwide.
Home & Networks Mobility, based in Arlington Heights, Illinois, focused on developing digital video systems, set-top boxes, DSL and cable modems, along with broadband access solutions for cable/satellite operators, wireline carriers, and wireless service providers.
Mobile Devices, located in Chicago, Illinois, was responsible for designing wireless handsets and licensing intellectual property related to cellular systems and integrated applications including Bluetooth accessories.

Financial Performance

In the fourth quarter of 2007, Motorola’s handset segment recorded a loss of $1.2 billion while the corporation as a whole posted a modest profit of $100 million for that period. The company faced executive turnover with key personnel moving to rival firms and criticism over a lack of innovation in its product lineup. Workforce reductions included layoffs of 3,500 employees in January 2008 and another 4,000 in June 2007; additionally, research staff was cut by 20%. Mid-2008 saw several executives transition to Apple Inc.’s iPhone project. Amid shrinking market share—from 18.4% in 2007 down to 6.0% by Q1 2009—Motorola listed its handset division for sale, with analysts predicting it might be sold at a loss or possibly discontinued.

Nonetheless, Motorola returned to profitability with a $26 million gain reported in Q2 2009 accompanied by a 12% rise in stock value. By Q2 2010, the company announced a year-over-year profit increase of $162 million; notably, its Mobile Devices unit generated $87 million in earnings—signaling a strong financial recovery.

Environmental Performance

Motorola was identified as the principal contributor to trichloroethylene (TCE) pollution in Scottsdale, Arizona, leading to a three-day water usage ban impacting nearly 5,000 residents. This contamination originated from a malfunctioning blower on an air stripping tower designed to eliminate TCE—a cancer-associated industrial solvent. Motorola attributed the event to operator error.

In Greenpeace’s October 2010 Guide to Greener Electronics report, Motorola ranked sixth among eighteen leading electronics manufacturers alongside Panasonic and Sony. The company received positive marks for chemical management practices and committed to phasing out PVC plastics and brominated flame retardants (BFRs) in mobile devices launched after 2010; however, this commitment did not extend across all product categories. Its mobile phones became PVC-free models such as the A45 ECO and GRASP; furthermore, all chargers were manufactured without PVC or BFRs.

Motorola also increased the use of recycled materials within its products—for instance, the housings of the MOTO W233 Renew and MOTOCUBO A45 Eco incorporated plastics derived from post-consumer recycled water bottles. Additionally, all newly designed chargers complied with Energy Star criteria and surpassed standby/no-load power consumption limits by at least 67%.

External links

Archived official site (as of December 31, 2010)
Archived press releases covering Q1 1998 through Q3 2000