Feb 20, 2011

Verizon-Apple deal may hurt Motorola Mobility

 Verizon_appleMotorola Mobility Holdings Inc's sales to Verizon Wireless grew to 28 per cent of revenue last year, underscoring the carrier's importance to the mobile-phone maker as Verizon begins selling Apple Inc's rival iPhone.

Motorola's revenue from Verizon Wireless and parent Verizon Communications Inc increased from 17 per cent in 2009 and 13 per cent in 2008, the company said in a regulatory filing. Sprint Nextel Corp accounted for 13 per cent and 7 per cent of revenue in those two years.

"The loss of, or a significant reduction in revenue from, one or more of these customers could have a negative impact on our business," the Libertyville, Illinois-based company said in the filing.

Verizon Wireless, the largest US wireless carrier, began selling the iPhone this month, ending AT&T Inc's exclusive hold on the device in the US. The iPhone had already triggered "some slowdown," Sanjay Jha, Motorola's chief executive officer, told analysts on January 26.

Jha is relying on the growing popularity of Google Inc's Android mobile-phone platform to sell more models of its phones at Verizon Wireless, AT&T and Sprint.


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