The Google Motorola Acquisition: Case Study Of The Google Motorola Acquisition

It is important to pay attention to those manufacturers that are working with android (Not only concentrate marketing activities in apple or RIM), because the potential growth of the Google’s brand could be an opportunity to grow in smart phones sales, increasing the market share.

Throughout the past year, Apple stock has had an astounding growth of 45% over the past twelve months, as well as a 10% growth of dividends by 10%. This increase in dividend is expected to increase by 7.43% over the next 12 months. Along with stock price and dividends, earnings per share is also expected to rise. Earnings per share is expected to rise from the current amount of $1.88 to as high as $10.74 per share. Apple’s marketing strategy is designed to keep stock prices high and shareholders happy. This growth in Apple stock is expected to continue to rise with a median change of 8.7% in the next twelve months. The current state of Apple stock is very impressive and market predictions show that it should become even more impressive in the next twelve months. (Financial Times

- January 9, 2007: Apple, Inc. unveiled Apple TV and IPHONE TV to conquer new technology markets since the company launched the original iPod in October 2001. Apple's stock increased by $7.10 a share, or 8.3%, to an all-time closing high of $92.57.

Case 4 – Google: Research Google’s attempt to buy into wireless via the 700 MHz Spectrum Auction.

Apple, filed their 10k annual report with the SEC for financial results for their fiscal 2014 fourth quarter ended September 27, 2014 (www.paladino.ch, 2014). Apple reported their quarterly revenue at $42.1 billion and quarterly net profit of $8.5 billion, or $1.42 per share (www.paladino.ch, 2014). These results compare to revenue of $37.5 billion and net profit of $7.5 billion, or $1.18 per diluted share, in the year-ago quarter. Gross margin was 38 percent compared to 37 percent in the year-ago quarter (www.paladino.ch, 2014). International sales accounted for 60 percent of the quarter’s revenue. Apple’s board of directors has declared a cash dividend of $.47 per share of the Company’s common stock. The dividend is payable on November 13, 2014, to shareholders of record as of the close of business on November 10, 2014 (www.paladino.ch, 2014).

In the article “Apple Forecasts First Sales Drop Since 2003 on iPhone Slowdown” by Adam Satariano he discusses many factors contributing to Apple’s first sales decline in over 13 years and what steps they plan to take to recover. Apple’s revenue was expected to produce $55.5 billion this quarter but the company believes it will be $50-$53 billion dollars (Satariano, “Apple Forecast”). This decreased is believed to show signs of saturation in the smart phone market. Along with iPhones, Apple also had a pause in its iPad and Mac sales last quarter (Satariano, “Apple Forecast”). Apple is still overwhelmingly profitable but they cannot rely on the adoption of smart phones to carry the iPhone sales anymore.

Apple, one of the leading technological companies in the world has recorded revenues uncharacteristically short of expectations. Wall street analysts predicted iPhone sales during their fourth quarter earnings to be ’20 million sales’, with a short fall of ’17 million sold’. With overall revenues recorded at $28.3 billion, substantially short of expectations (Sky News, 2011).

We chose to research Apple Incorporated, one of the most innovative companies of our generation. It is safe to say that nearly every one in the US and many foreign countries have used or at least heard of Apple products. We will be looking at the macroeconomic variables that impact Apple’s business as well as how the current developments in the industry have impacted Apple’s financials and we will also look at how Apple competes with other firms in the same industry.

However, in spite of the successes of Apple, the Company’s stock price had been dipping since reaching its high

Motorola, famous amongst mobile phones, and one of the top cellular phone companies in the world till late 1990, later it was captured by the company Nokia. While writing this case we have thrown light on the challenges and problems faced by Motorola around 2006-2007. One of the ideas incorporated in order to recapture the market in the year 2006 was to slash the prices of almost all the cell phones which impacted the returns of the company. Motorola did announce in the year 2007 that they will revive shortly and would have the market share back.

The Motorola Corporation was founded in 1928 when its’ Owners Paul and Joseph Galvin decided to start a business in the area of battery storage. Paul was interested in improving on the technological advances that had taken place to date in that field. As a result, his motivation and hard work allowed investments to be made in the manufacturing industry toward the promotion of that product. The first device made and marketed by the company was a power converter designed to allow battery-powered radios to run on household

Google was formed on September 7, 1998, became a privately held company founded in design and management of an Internet search engine. On May 2012, Google bought Motorola mobile for $12.5 billion dollars. Right after on September 7, 2012, Google said it has also acquired the network security Company VirusTotal. Google is currently recognized as the world 's largest search engine, which provides easy-to-use free service (Wikipedia).

Motorola is a global communications leader that is divided into six business units: semiconductor products sector (SPS), broadband communications sector (BCS), integrated electronic systems sector (IESS), commercial, government and industrial solutions sector (CGISS), global telecom solutions sector (GTS), and the personal communications sector (PCS). Motorola was formed in the late 1920’s by two brothers; Paul and Joseph Galvin, since that time the company has undergone numerous changes. Today they are located in about 70 countries and are still one of the top electronic manufacturers.

Motorola Solutions, Inc. is an American data communications and telecommunications equipment provider. Motorola was a giant in the mobile industry, however, it has returned to its roots of providing communications equipment for public safety. Motorola sold its enterprise unite in 2014, which consisted of mobile computers, tables, and barcode scanners, and focuses on its public safety and commercial customers. Today, Motorola designs, and makes two-way radio systems, wireless broadband products used in private voice, data networks, and public safety communication systems.

After researching Motorola one of the most delightful things that I discovered is that the biggest opportunity is their wide range of products that are well placed in the market, when the military has a need Motorola is here, when public safety has a need Motorola is there as well as the general population. Also understanding the fact that they have a very strong promotional strategy, by using different tools they tempt their customers towards an exciting era of innovation. The fact that Motorola has been involved in the venture of