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Software industry

Motorola and Partners Form Linux-Based Mobile Phone Alliance

Strategic Insights

— 1 min read

Motorola and a group of major companies have announced plans to form an alliance to develop Linux-based software for mobile phones. The move is seen as a challenge to the market dominance of Symbian and Microsoft. The group, which includes companies like Vodafone Group and NTT DoCoMo, aims to reduce software development costs and create services that can be used across different devices. This alliance could potentially disrupt the market, forcing Symbian and Microsoft to adapt to new competition.

Key Takeaways:

  • Motorola has formed an alliance with Vodafone Group, NTT DoCoMo, Matsushita Electric Industrial, Samsung Electronics, and NEC to develop Linux-based software for mobile phones.
  • The group aims to reduce software development costs and create services that can be used across different devices.
  • Symbian, the leading maker of software for smart phones, is 47.9% controlled by Nokia.
  • Microsoft has been promoting its Windows Mobile platform, but faces increased competition from the Linux-based alliance.
  • The alliance plans to seek additional members, with Nokia and Sony Ericsson expressing interest and commitment to Symbian, respectively.
  • Symbian's shareholders include Ericsson AB (15.6%), Sony Ericsson Mobile Communications (13.1%), Matsushita's Panasonic unit (10.5%), Siemens AG (8.4%), and Samsung Electronics (4.5%).
  • Shipments of Symbian-powered phones have more than doubled for four straight years, with the company providing software for 100 different handset models and over 250 phone companies.

Statistics:

  • Symbian-powered phones have seen shipments more than double for four consecutive years.
  • Symbian provides software for 100 different handset models and over 250 phone companies.
  • Symbian shareholders hold a combined 92.5% stake in the company.
  • The market for operating systems for advanced wireless devices is expected to see significant competition from the new Linux-based alliance.

Sources:

  • Motorola (no date provided)
  • Vodafone Group (no date provided)
  • NTT DoCoMo (no date provided)
  • Matsushita Electric Industrial (no date provided)
  • Samsung Electronics (no date provided)
  • NEC (no date provided)
  • Richard Windsor, analyst at Nomura in London (no date provided)
  • Maarit Matikka, Nokia spokeswoman (no date provided)
  • Merran Wrigley, Sony Ericsson Mobile Communications spokeswoman (no date provided)

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