Motorola 2002 Annual Report Download - page 36

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34 Motorola, Inc.
PERSONAL
COMMUNICATIONS
SEGMENT
Can you guess how many people in the world use
mobile handsets today? Only 1.2 billion, out of a
global population of more than 6 billion. Many of
those 6 billion are our potential customers – which
means significant opportunities to sell someone
their first mobile handset and 1.2 billion opportunities
to provide replacement units. In market share, w e are
the No. 2 mobile handset provider in the w orld today.
We started out calling them cell phones, but that
was when you only used them for conversation.
Today we can use them to transmit and receive
music, games, text, images and other forms of
information and communication – all personalized
to your needs and interests. It’s about self-expression
and self-extension; these devices have become a
genuine instrument of your personal potential.
In 2002, we returned to profitability, gained
market share, improved our customer relationships,
reinvigorated the Motorola brand and revitalized
our product portfolio with design innovation and
technology leadership.
We are a co-leader for the No. 1 share of market
in North America, and w e are No. 2 in Latin America.
We believe our hard-w on gains in North America
can be replicated in Europe / Middle East / Africa,
where we are intent on moving up from our No. 3
position.
We continue to be No. 1 in China and No. 2 for the
entire Asia / Pacific Region.
In 2002, net sales for the Personal Communications
Segment increased 4% to $10.8 billion, compared
to $10.4 billion in 2001. The segment reported 2002
operating earnings of $503 million, presented on a
GAAP basis, versus an operating loss of $1.6 billion in
2001. Excluding special items, the segment reported
operating earnings of $804 million, compared w ith an
operating loss of $318 million in 2001. Improvements
in the segment’s cost structure, customer relation-
ships, product portfolio and strength of the brand
continue to drive earnings and market-share gains.
Future growth will be driven by increases in the
customer base and an active replacement market. In
the emerging markets of Russia and Eastern Europe,
India, China, Southeast Asia, Brazil and Mexico,
we are well-armed with entry-level handsets such
as our C330 series. In more developed markets
we sweeten the replacement opportunity with
games, productivity tools and picture messaging –
all in color.
A830: DUAL MODE 3G / UMTS HANDSET WITH INTEGRATED CAMERA
E360: GSM COLOR DISPLAY HANDSET WITH
AFFORDABLE MULTIMEDIA
V70: GSM HANDSET FEATURING
HEAD-TURNING DESIGN