Released on = January 10, 2006, 8:41 am

Press Release Author = visiongain

Industry = Telecommunications

Press Release Summary = Motorola poised to take over Samsung and even Nokia as a
leading handset manufacturer.

Press Release Body = San Francisco, CA and London, UK; 10 January 2006: Motorola,
which was widely predicted to be overtaken by Samsung to second place in 2004/05,
has turned the corner and is setting its sights on challenging Nokia to become the
handset market leader. That is the finding from a new study, "Motorola: Innovating
to become the handset market leader", published by industry research firm,
visiongain.

Visiongain estimates that Motorola's handset market share grew to almost 19% in 2005
from 15% in 2003, thanks to products such as the RAZR, which have increased sales
and boosted the company's brand image, at a time when Nokia's share has been
sliding. The success of RAZR helped Motorola's shipments increase 41% year-over-year
in Q2 2005, outperforming all competitors. But is the RAZR the shape of things to
come for the US mobile phone giant?

"We believe that the success of RAZR and other newly-introduced products has
provided Motorola a solid base to implement emergent and planned strategies to
further improve on its profit margins and market share," says report author Prachi
Nema.

"Since 2004, Motorola's profitability has improved, largely due to its innovations,
which helped the company to distance itself from its closest competitor, Samsung.
This strategy of product innovation also helped Motorola to position itself more
favourably to challenge Nokia," adds Nema.

With new models based on a slim design expected in 2006, as well as new services
such as iRadio, visiongain believes Motorola is well positioned to further make
market inroads. In addition, the 'Hello Moto' campaign and Motorola's association
with films and music has helped introduce younger customers and improved brand
strength.

However, Motorola faces a number of challenges as it attempts to gain ground on
Nokia, particularly in Europe, where Nokia is dominant, as well as in emerging
markets. While the involvement with the GSM Association's Emerging Market Handset
(EMH) Programme will help the latter cause in terms of market share, it will also
put pressure on Motorola's profits and ASPs. As competitors begin to replicate
Motorola's ultra-slim designs, the company will have to ensure it keeps innovating
to stay a step ahead, as well as improve a notoriously cumbersome User Interface
system.

Nevertheless, Motorola's rise presents threats and opportunities that companies
across the value chain need to be aware of. It is vital for vendors, network
operators and other players in the wireless value chain to understand the growing
power of Motorola, and plan for emergent strategies.

This report provides a strategic analysis of Motorola's current position in the
market and how the company is evolving, as well as its future plans in the face of a
changing wireless industry landscape. It also discusses Motorola's internal
management, structure and organisation, market strategy, products and services. The
report provides strategic insight into the operations of Motorola and suggests how
the company should position itself in order to take advantage of the opportunities
that are present in the external environment. In addition, the challenges that lie
in Motorola's path are analysed, as are its relationships with partners, suppliers
and competitors.

ENDS

Notes for Editors
If you are interested in a more detailed overview of this report, please send an
e-mail to sara.peerun@visiongain.com or phone Sara on +44 (0) 20 8767 6711 or see
http://www.visiongainintelligence.com/reportDetail.aspx?reportId

Web Site = http://www.visiongainintelligence.com/reportDetail.aspx?reportId

Contact Details = Sara Peerun
visiongain
sara.peerun@visiongain.com
www.visiongain.com