Motorola Reassures on Qualcomm, Texas Instruments

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Includes: GOOG, HHH, QCOM, TXN, WMH
by: Judy Weil

Motorola is banking on Google's (NASDAQ:GOOG) Android navigating system for its Smartphone strategy. Analysts asked if that would change Motorola's relationship with Texas Instruments. Motorola (MOT) on Texas Instruments (NYSE:TXN) and Qualcomm (NASDAQ:QCOM), from the company's Q408 conference call:

Our Smartphone road map includes a variety of devices, many based on the Android operating system.

Q: I know Qualcomm (QCOM) has done a lot of work with Android and so the chips are pretty well tuned and the software, it’s tuned for Android. I wanted to get a sense if you thought from a funding perspective you might back off on your work with Texas Instruments there?

A: Between 30% and 40% of our R&D investment is on Smartphone going forward. We think that one of the reasons that we’ve liked Android is that we could focus a lot of those dollars on differentiating, because we don’t have to develop the platform ground-up.

Q: Is Texas Instruments, is that going to be your lead horse or are you going to back off on that work and move more towards QUALCOMM, do you think?

A: In the low end, we are committed to Qualcomm solutions. In the high end, we have committed to TI and we remain committed to that strategy.

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