According to Motorola Solutions (MSI), sales growth in North America is expected to be “in the low single digits” in 2016 as the company improves sales coverage and captures value for new features and services. In 4Q15, sales from North America fell by 1% YoY (year-over-year) and were flat on a constant currency basis.
Latin America, Europe, and Africa
Driven by continued economic weakness, Motorola expects sales in Latin America to fall YoY in 2016 as well. The company stated that it expects the sales decline to be concentrated in the first half of 2016, however. Last quarter, revenues from Latin America fell by 42%, or by $58 million, with Brazil (EWZ) representing the largest decline.
Revenues from Europe and Africa are expected to grow in 2016, now that Motorola completed its acquisition of Airwave in 4Q15. Motorola also expects some headwinds in the first half of 2016 in Europe as a result of its completion of the Norway integration and its weakness in eastern Europe. In 4Q15 revenues from Europe and Africa fell by 21% YoY.
Asia-Pacific and the Middle East
Although Asia-Pacific showed signs of stabilization in the second half of 2015, Motorola expects revenues in 2016 to be flat due to economic volatility in China (FXI). However, the firm expects strong growth in the Middle East in 2016 with ongoing LTE (long-term evolution) deployments. In 4Q15, revenues from Asia-Pacific fell by 2% YoY.
Motorola accounts for 8.4% of the iShares North American Tech-Multimedia Networking ETF. Other top holdings of this ETF include Harris Corporation (HRS) and Cisco (CSCO), which constitute 9% and 8.6%, respectively, of the ETF.
Continue to the next part for a closer look at the Motorola and Ericsson collaboration.