Paul Galvin and his brother Joseph incorporated their firm on September 25, 1928. Their premier product was a “battery eliminator” which allowed users to operate a radio from a household electrical current instead of the traditional battery. Two years later, Galvin Manufacturing Corporation introduced the first successful car radio. Galvin named the new radio “Motorola”, in an attempt to signify the union of motion and sound. The Motorola name then became the brand name for all of GMC’s products.

The 1940’s saw many changes for Motorola. A professor from the University of Connecticut, Daniel E. Noble, joined on with Galvin Manufacturing as the director of research, and his new ideas would soon change not only Motorola’s product line, but their financial success as well (www.aes

Motorola extended lines of credit to allow these ventures to be built using their products. The Nextel venture accounted for 15% of their hand set sales for that year. Motorola attempted to play banker when they should have offered lower prices. They also held Nextel shares initially worth $1.9 billion, but which had fallen to $300 million in 2002. There was a general trend of equipment manufacturers making loans to telephone companies and Motorola became caught in the rush and got burned as it extended more in equipment loans that any other vendor. They forgot that credit sales do not help working capital (Crain Communications Inc).

From a recent article on CDMA solutions, Motorola seems to have regained its ground. As stated in the article,

.org). Noble was a trailblazer in the newly developing fields of semiconductors and FM radio. The early 1940’s brought several successes for Motorola, with its consumer line of two-way FM radios, and the very first “walkie-talkie” which gained popularity as it was used by U.S. soldiers fighting overseas. After a failed attempt at producing gasoline-burning car heaters in 1946, Galvin decided that he would stick solely with electronics (www.motorola.com).

Q4 '94 $5,000 $0.58 6.8% 58 7/8 586.2 1.84 21.85

In both of these cases, management appeared to be playing too much of a game. Not enough planning or communication occurred to offset the eventual financial problems.

After suffering through the realization that the analog StarTAC would never be able to compete with its new digital counterparts, Motorola converted it to digital. And they not only perfected it for the consumer market, but for the corporate market as well--especially for companies such as Domino’s Pizza. This new technology allowed

Q2 '92 $3,140 $0.27 4.6% 19 535.6 1.12 21.29

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