Throughout history, there have been several examples of giant corporations whose market presence has diminished, either because they made a strategic mistake or because they neglected the development of their business. . Among these companies is Motorola, which was about to sell all its activities to other companies, but something happened, instead of the dark fate that awaited the company which abandoned cell phones and found a another profitable job, to become one of the biggest stories of technological transformation. .
Motorola does not give up
In the past, Motorola and Nokia dominated the global mobile phone market, but both companies lost control of this market to Apple and Samsung, prompting Motorola in 2008 to dump the unit phone, which is now owned by Lenovo, but that did not cause Motorola to capitulate, it has expanded into new businesses to become, in recent years, a major player in the field of security and public safety.
And at a time when many tech companies were suffering from a decline in business in 2022, Motorola’s sales, earnings and shares were doubling in proportion, dropping the company to 418th place on the Fortune 500 list. of the biggest companies in the world. .
The person who put Motorola back on the path to success is CEO Greg Brown, who took over in 2008 and led the company’s transformation into one of the biggest technology transformation stories in recent history. market, based on his view that Motorola can do a lot. By doing less, and that the best part of the business is the part few care about.
Motorola sales top $9 billion
Technology expert Dadi Geagea said in an interview with “Sky News Arabia Economy” that Motorola’s revenue surpassed the $9 billion mark in 2022 and its profits more than doubled to 1. $3 billion, with profits expected to increase by 10%. the current year 2023, noting that the company’s shares have risen more than 145% in the past five years, topping the current level of $279, from $114 in 2018.
Motorola’s value is $48 billion
Geagea explains that Motorola’s value reached around $48 billion at the start of June 2023, more than it was worth when it was producing phones, when all the companies Motorola had competed with in the past, including Blackberry and Nokia, are unable to convert to new projects.
She added that the transformation that happened at Motorola did not happen overnight, but rather started in 2008 and continues until now, because in 2014 Motorola was still suffering financially, and this period witnessed attempts to sell all of the company’s businesses and its share price hit its all time lows. About $60.
holding 35 companies
According to Geagea, Motorola’s exit from the mobile phone unit, in addition to other businesses, freed it up to focus entirely on security services, revealing that Motorola had bought 35 companies since 2015 so far, the biggest of which was the acquisition of Avigilon for $1 billion in 2019, a deal that has played a major role in the growth and prosperity Motorola is currently achieving.
What is the success of the company linked to?
For his part, technology analyst Rayan Mortada said in an interview with “Sky News Arabia Economy” that the success that Motorola is currently enjoying is linked to the sales of security solutions and devices that the company provides to schools, to hospitals, public places, police and fire departments and 911 call centers. , and other security services in America, revealing that the company now has many security products, which are adopted by police and local authorities, through contracts worth millions of dollars and spanning decades.
Mortada reveals that Motorola has smart radios, through which communication takes place between police personnel, license plate readers used by police, and camera systems used by police cars, which scan through artificial intelligence techniques anyone who approaches them looking for weapons, in addition A panic button system used in thousands of schools and cameras powered by artificial intelligence detect unusual activity in public places and private institutions and report them to the police as a preventive measure.
Mortada adds that the mass shootings and high crime rates America has experienced in recent years have made Motorola a major player in the public safety space, which will generate revenue of approximately $10 billion in 2023. .
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