Motorola Inc (MOT) is all set to release the latest addition to its mobile computing group ‘The ES400’ EDA (Enterprise Digital Assistant), which is based on Microsoft Corp.’s (MSFT) Windows Mobile 6.5 platform and runs on the Sprint Nextel Corp.’s (S) 3G network. ES400 will be sold exclusively to corporate customers.
Motorola generally uses Google Inc‘s (GOOG) Android software for its consumer cellphones, but for ES400 it has opted for Microsoft’s technology to cater to its corporate clientele. Microsoft’s technology offers better security and control in case of mobile theft by deleting all the contents from the device and making it unworkable.
During the first quarter of 2010, mobile devices revenues totaled $1,641 million, down 9% year over year. Motorola shipped 8.5 million mobile phones, including 2.3 million smartphones. This is a considerable improvement over 2 million smartphones shipped in the previous quarter. During the first quarter, the company launched 6 new 3G smartphones, all are based on Google’s Android operating system.
Motorola’s cellphone unit faces severe competition from smartphone makers Apple Inc. (AAPL) and Research In Motion Ltd. (RIMM) and is continuously trying to introduce innovative products to beat the competition.
We believe effective cost control measures, massive demand for wireless broadband services and the newly introduced high-end 3G smartphones will lead to profitability. We currently maintain our Neutral rating on Motorola.
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