Motorola Wins CES

Event Summary

January 5, 2011 - On the heels of becoming a newly independent company, Motorola Mobility showcased the XOOM, the first Android 3.0 tablet, and DROID Bionic smartphone, both for Verizon Wireless’ LTE network. The Atrix 4G is an Android 2.2 smartphone for AT&T with a dual-core processor and a unique webtop software interface used when connected to a larger monitor or docked in an optional notebook shell. The CLIQ 2, a sliding QWERTY smartphone will launch at T-Mobile.

Quick Take

Analytical Summary

• Current Perspective: Very positive on Motorola Mobility’s first new product announcements after becoming an independent company, because three out of the four product announcements are competitive, and one is potentially groundbreaking. The XOOM will be the first Android 3.0 tablet and should get a strong initial push from Verizon Wireless in Q1 2011 before it shows up at AT&T later in the year. The DROID Bionic is the only LTE phone with the DROID brand. The CLIQ 2 is less exciting over at T-Mobile, but the Atrix 4G, which introduces Motorola’s webtop light computing platform, is the most innovative device at the show.

• Vendor Importance: Very high to Motorola Mobility, because the new company must succeed solely on the merits of its handsets and set-top boxes. (It would have been nice to know how set-top boxes fit into the new company’s strategy, but it is hard to fault Motorola for using CES to highlight its smartphones and tablets.) Motorola also needed to launch a strong product at a carrier other than Verizon Wireless, should the carrier get a CDMA iPhone shortly.

• Market Impact: High on smartphones and personal connected devices because Motorola’s webtop could become a significant differentiator for the company across a variety of devices going forward. There is also the danger that its benefits will be hard to articulate and the accessories priced out of reach, but the potential for enormous success is there. The XOOM appears to be a solid tablet entry, and while there will be plenty of Android 3.0 competition, getting out the door first with a strong launch partner is one way to stand out from the crowd.

CLIENTS ONLY

Competitive Strengths and Weaknesses

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