Motorola Mobility Drew 28% of Sales From Verizon
Motorola Mobility Holdings Inc.’s sales to Verizon Wireless grew to 28 percent of revenue last year, underscoring the carrier’s importance to the mobile-phone maker as Verizon begins selling Apple Inc.’s rival iPhone.
Motorola’s revenue from Verizon Wireless and parent Verizon Communications Inc. increased from 17 percent in 2009 and 13 percent in 2008, the company said today in a regulatory filing. Sprint Nextel Corp. accounted for 13 percent and 7 percent of revenue in those two years.
“The loss of, or a significant reduction in revenue from, one or more of these customers could have a negative impact on our business,” the Libertyville, Illinois-based company said in the filing.
Verizon Wireless, the largest U.S. wireless carrier, began selling the iPhone this month, ending AT&T Inc.’s exclusive hold on the device in the U.S. The iPhone had already triggered “some slowdown,” Sanjay Jha, Motorola’s chief executive officer, told analysts on Jan. 26.
Jha is relying on the growing popularity of Google Inc.’s Android mobile-phone platform to sell more models of its phones at Verizon Wireless, AT&T and Sprint.
Motorola Mobility rose 20 cents to $30.03 at 4 p.m. in New York Stock Exchange composite trading.
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