A Shrinking Motorola Wins Big In China - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

IoT
IoT
News

A Shrinking Motorola Wins Big In China

Motorola's $95 million, two-contract deal to supply China Mobile with hardware and services could help reverse Motorola's fortunes.

Two days after revealing that it will eliminate more than 40,000 jobs over the next year, struggling chip and wireless vendor Motorola Inc. says it has won two contracts worth $95 million to supply China's leading operator of mobile phone infrastructure with hardware and services.

Under a deal revealed Thursday, Motorola will deliver its Horizon Systems GSM (Global Systems for Mobile Communications) solution to help China Mobile expand its GSM network in Beijing and Sichuan. The installation is scheduled for completion next fall. Motorola will also install equipment to expand China Mobile's General Packet Radio Service in Beijing.

The deal comes at a crucial time for Motorola, which earlier this week announced a round of job cuts through which it will eliminate 9,400 positions. Those cuts, combined with previously announced layoffs, brings the total number of positions that Motorola will eliminate by next year to 42,900. As of August 2000, Motorola employed about 150,000 workers.

In October, the company reported a third-quarter loss of $153 million compared with earnings of $643 million a year earlier. Sales for the period declined 22%. Earlier this week the company said it expects fourth-quarter sales to be flat compared with a year ago. Motorola is scheduled to report results for the fourth quarter and 2001 on Jan. 22.

Analysts say Motorola's troubles are the result of falloffs in its core semiconductor and telecom businesses. "Those industries are going through the worst slumps anyone has ever seen," says Technology Business Research analyst Bill Lesieur. Lesieur says further headway in China could help reverse the company's fortunes. "The sheer numbers are there," he says. Including the contracts announced Thursday, Motorola has secured deals worth a total of $1.44 billion in China this year.

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
2020 State of DevOps Report
2020 State of DevOps Report
Download this report today to learn more about the key tools and technologies being utilized, and how organizations deal with the cultural and process changes that DevOps brings. The report also examines the barriers organizations face, as well as the rewards from DevOps including faster application delivery, higher quality products, and quicker recovery from errors in production.
Slideshows
10 Top Cloud Computing Startups
Cynthia Harvey, Freelance Journalist, InformationWeek,  8/3/2020
Commentary
Adding Fuel to the MSP vs. In-house IT Debate
Andrew Froehlich, President & Lead Network Architect, West Gate Networks,  8/6/2020
Commentary
How Enterprises Can Adopt Video Game Cloud Strategy
Joao-Pierre S. Ruth, Senior Writer,  7/28/2020
Register for InformationWeek Newsletters
Video
Current Issue
Enterprise Automation: Do More with Less
In this IT Trend Report, we highlight the benefits of automation and the various tools as enterprises navigate turbulent times, try to do more with less, keep their operations running, and stay on track with digital modernizations.
White Papers
Slideshows
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Sponsored Video
Flash Poll