Through TheFLY's Eyes: Motorola, Inc.
Motorola Is Ready For The Next Big Thing: Q
After years of market share losses to Nokia (NOK) and Samsung, Motorola (MOT) finally got its groove thing back with the Razr. So what is next? According to the company, it will be Q. Q is the handheld internet device that will compete against Research in Motion (RIMM) and Palm's (PALM) Treo. Management indicates that the acceptance of this product surpasses that of other products in this space.
What's To Like?
Q is being launch on the CDMA platform (with more to come later) and will work using Microsoft's Mobile OS. Therefore, rather than shying away from the Microsoft (MSFT) giant (like Nokia has), Motorola is embracing it. The first big service provider to sell Q is Verizon which began selling the sleek product in June. It appears the timing is for Motorola and Verizon to really ramp sales and production going into the holiday season with a very attractive $199 price point.
According to Motorola, the ramp should mirror that of the Razr. If management is correct about the early acceptance of this product, this will be the second big hit for this company that got destroyed in the 1990s by Nokia and Samsung. Motorola's market share dropped throughout the 1990s before bottoming at 13 to 14% a few years ago. Management is on track to increase market share back up to 21%. A big rebound for this company.
While Nokia seeks ways to protect its turf by being slow to sign deals with Qualcomm (QCOM) and Microsoft, Motorola is flying along signing deals and regaining market share. If sales soar to the sky, so will Motorola's stock.