Rhys Blakely
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Motorola is planning to rival the BlackBerry mobile e-mail service and will prioritise wireless internet systems over budget handsets as it seeks to revive a dramatic slump in performance, the mobile giant's head of technology told Times Online.
Padmasree Warrior, who leads 26,000 engineers and controls a $4 billion (£1.97 billion) research budget, highlighted as key to the group's future the recent acquisition of Good Technology, for $438 million.
Good Technology specialises in mobile e-mail systems and, according to analysts, could transform Motorola into a serious rival to Research in Motion (RIM), the group behind the BlackBerry. Good's "push e-mail" system is being rolled out in Motorola's Q series of smartphones.
Humiliatingly for Motorola, the Canadian-based RIM, which is fast approaching the 10 million user mark, is now worth about $46 billion, far outweighing Motorola's $40 billion market value — despite having less than a tenth of the US group's revenues.
"In terms of user experience for wireless e-mail, the Good system is right up there," Richard Windsor, the Nomura anayst, said.
"Where it falls down at the moment is in [Motorola's] devices ... But the acquisition means Motorola is excellently equipped to bring internet-type experiences to mobile."
Ms Warrior said that the launch this year of Apple's iPhone had "raised user interest in smartphones and in mobile functions beyond voice".
She added: "We are looking at developing the next generation of social networking platforms ... We will have a strong portfolio of products in this area."
Ms Warrior also drew attention to Motorola's acquisition last year of Symbol Technologies, for about $4 billion, which bolstered the group's presence in the market for "blue collar" devices.
Symbol, which specialises in providing businesses with "rugged mobile computing systems", counts large companies such as Tesco, the UK's largest retailer, as clients.
It joined Motorola's networks and enterprise division, which rolls out wireless business networks and devices and counted for about a quarter of Motorola's sales last year.
Ms Warrior added that Motorola was also targeting areas including web-based TV and WiMax internet access as it seeks to diversify from its struggling handset business and reassure investors after two consecutive quarterly losses.
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