RFID Gazette: Implications of Motorola's Purchase of Symbol Technologies

September 22, 2006

Implications of Motorola's Purchase of Symbol Technologies

RFID Update reflects on what the big announcement about Motorola buying Symbol means for both Motorola and the RFID industry. The gist of it, from the RFID Update article and my own thoughts, is as follows:

Motorola's products are more consumer-focused; Symbol's are enterprise-focused. There's little to no overlap in products. Although Motorola is involved in RFID to a degree, and is even a member of the NFC (Near Field Communications) forum.
Symbol's yearly revenue will double, and more, Motorola's enterprise-specific revenue. That's always a good thing. And with no product overlap, that probably means no job cuts - and that's also a good thing, depending on your perspective.
Motorola made a very smart buy. As RFID Update says, Motorola can "exploit the enterprise computing trends of mobility and convergence."
Expect to see RFID-enabled mobile communication devices (i.e., cell phones, VoIP phones, etc.) next year. Also expect to see hybrid RFID/ VoIP wearable communication devices for enterprise use (pun intended), such as the Vocera Call Badge, but with RFID for identification/ access. This is a prediction, not based on anything specific other than my knowledge of the RFID and VoIP markets. If I'm wrong, no harm done.
Symbol's customer list will be valuable to Motorola, as will its distribution channel. More sales for Moto.
Motorola has the funds and patience to wait out the couple of years before RFID achieves greater, more widespread penetration in terms of business use (manufacturing, retail, consumer, transit, etc.) When that happens, the ROI for them will start to be realized.
Symbol had announced intent to build a "convergence platform" (Wi-NG, Wireless Next Generation) for all types of wireless and mobile devices. Motorola is involved in convergence, will thus benefit from continuing with the Wi-NG project, as would other companies who may partner with Motorola.
Motorola may spin-off (and sell?) Symbol's barcode tech.

It's easy for me to say that this is a good buy, despite Symbol's own recent problems. (Symbol bought Matrics, an RFID hardware maker, in 2004. Though I'm not sure if this contributed to their business difficulties. They also announced an RFID partnership with Microsoft in Jun 2005, but the latter's focus isn't on hardware like Motorola.) But I think we will see important announcements in RFID, cellular technology, convergence, etc., in the next few years, thanks to this acquisition. And maybe this time, Motorola can find value in RFID, unlike their previous effort.

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September 22, 2006 in Business, Companies, Consumer Use | Permalink