Motorola Reassures on Qualcomm, Texas Instruments

Motorola is banking on Google's (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 (TXN) and Qualcomm (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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Comments

[BoTX:]

You got your quote wrong. Q is the low-end RTOS (P2K) phones and TI is in the HLOS (uS and Android). Check the transcript again.

Feb 05 06:13 AM

[SA Editor J...:]

Dear BoTX,

Thank you for bringing this to my attention. It was apparently a case of misplaced punctuation by the transcription service. I've changed it on the excerpt here, and it will be fixed on the original transcript as soon as possible. I appreciate your feedback as we always aim to be as accurate as possible.
All the best,
Judy

Feb 05 06:41 AM

[SA Editor J...:]

Fixed in the transcript as well. Thanks!

Feb 05 06:43 AM

[Geek.:]

That "strategy" (low-end bet on QCOM, high-end on TI) makes no sense to me. Today Qualcomm fires most of the best smartphones in the world (including the only two Androids) and TI does none. What's the point of continuing to bet on the losing horse TI for the most lucrative market?!

Apr 23 01:52 AM