Motorola Mobility (NYSE:MMI) stock jumped over 7% yesterday as CEO Sanjay Jha gave his assessment of MMI’s future role in the global smartphone market at the Oppenheimer Technology & Communications Conference. [1] In particular, he commented that MMI would be interested in Microsoft’s (NASDAQ:MSFT) Windows 7 OS for its phones if it could secure a deal similar to the one that Nokia (NYSE:NOK) received. He also said that Mototola’s strong patent portfolio will help it differentiate itself in the mobile phone market. Most importantly, he made made encouraging remarks on the upcoming product portfolio that includes the LTE Droid Bionic, a high profile smartphone which was earlier supposed to be launched in Q2 2011 (see Declining Smartphone Mix a Worrying Sign for Motorola Mobility). He also mentioned that more global smartphone devices will be launched in addition to the Droid Bionic.
Motorola is currently committed to Google’s (NASDAQ:GOOG) Android operating system and faces stiff competition from Apple (NASDAQ:AAPL) and other Android based phones. Hence new product launches and the differentiating factor plays an important role if Motorola wants to stay afloat in the mobile phone market. Jha also predicted that while Android, iOS and Windows 7 look to be the main OS contenders for the future, he is not sure that all three will survive.
Our $21.15 price estimate for Motorola Mobility stock is about 10% below the market price.
See our complete analysis for Motorola Mobility stock here
Notes:- Motorola’s Jha comments, FierceWireless, August 9th, 2011 [↩]
