Motorola 2007 Annual Report Download - page 19

solutions to a wide range of enterprise markets, including government and public safety agencies (which, together
with all sales to distributors of two-way communication products, is referred to as the “government and public
safety market”), as well as retail, utility, transportation, manufacturing, healthcare and other commercial
customers (which, collectively, are referred to as the “commercial enterprise market”). In 2007, the segment’s net
sales represented 21% of the Company’s consolidated net sales.
Principal Products and Services
In the government and public safety market, we are the leading provider of advanced mission-critical systems
worldwide, with more than 65 years of experience in custom, rugged devices; public safety-grade private networks;
sophisticated encryption technology; interoperable voice and broadband data; and complex network design,
optimization and implementation services. In the commercial enterprise market, we are a global leader in end-to-
end enterprise mobility solutions. Our products and solutions capture, move and manage information in real time
to assist our customers in making more efficient business decisions. Our products include advanced data capture
products, mobile computing platforms and software management tools, wireless infrastructure, and radio
frequency identification (“RFID”) infrastructure and tags, and are sold as both integrated solutions and individual
devices.
The segment’s products are sold through Motorola’s direct sales force and through independent and
authorized distributors, dealers and value-added resellers, original equipment manufacturers, service operators and
independent commission sales representatives. Distributors and value-added resellers may provide a service or add
components in order to resell our product to end users. The segment’s distribution organization provides systems
engineering and installation and other technical and systems management services to meet its customers’ particular
needs. The customer may also choose to install and maintain the equipment with its own employees, or may
obtain installation, service and parts from a network of the segment’s authorized service stations or from other
non-Motorola service stations.
Our Industry
We compete in the mobile segment of the communications industry, providing wireless equipment
infrastructure and services to public safety, government and enterprise customers.
Within our government and public safety market, interoperability and natural disaster preparedness continue
to be important issues for our customers worldwide. We expect this industry to grow in the mid-to-high single
digit percentage range in 2008, consistent with previous years. Our extensive portfolio of products includes
advanced solutions for each of the major standards-based private network technologies, APCO 25 (Association for
Public Safety Communications Officials) and TETRA (terrestrial trunked radio), as well as biometrics and wireless
broadband applications. We expect sales to continue to grow worldwide as demand for integrated, interoperable
public safety communications increases. As new and better spectrum utilization evolves, we expect to see more
demand and greater potential for data applications, such as video surveillance and other data-based products, in
2008 and beyond.
Within our commercial enterprise market, we believe there is a significant growth opportunity as the global
workforce continues to become more mobile and the industries and markets that purchase our products continue
to expand. The markets in which Motorola competes include enterprise wireless infrastructure, mobile computing
solutions, bar code scanning, RFID solutions and mobile network management platforms. Organizations looking
to increase productivity and derive benefits from mobilizing their applications and workforces are driving growth
in this market, which we expect to be in the high single digits in 2008. With the acquisition of Symbol
Technologies, Inc. (“Symbol”) in January 2007, Motorola is well positioned to compete effectively in the enterprise
space.
Our Strategy
Motorola has been a leading provider of mission-critical systems in the government and public safety market
worldwide for more than 65 years. The acquisition of Symbol is the cornerstone of the segment’s strategy to
expand its leadership into the commercial enterprise market. We are using our combined scale to maintain and
expand our leadership position in these markets worldwide by uniting the two companies’ adjacent assets,
intellectual property, customer and supplier bases, and industry-leading products. The combination of our direct
sales and indirect channel partners provides significant distribution advantages in each of the markets we serve.
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