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Motorola and RadioShack Form Strategic Alliance
Mar 24, 2004
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Device manufacturer Motorola, Inc. and electronics retailer RadioShack Corporation announced a strategic relationship designed to source and commercialize new technologies and promote collaboration on consumer product development.

According to the companies, the relationship is a direct result of RadioShack's business innovation effort announced last year, as well as Motorola's continued efforts to create relationships with customers around the world to develop and deliver "the most compelling consumer wireless and broadband solutions that keep consumers informed, entertained, and connected," the company said in a statement.

While RadioShack currently distributes Motorola products such as mobile handsets and accessories, wireless broadband home networking gateways and products, and power devices, the new agreement is said to enable the two companies to identify new market opportunities and develop and license cutting-edge solutions to meet the market demand.

Initially, Motorola and RadioShack said they will focus on Bluetooth(R) wireless technology accessories, broadband networking, and home monitoring products, as well as expand Motorola's battery business. In the U.S., the companies said this will include combining Motorola's Bluetooth wireless technology expertise with RadioShack's distribution network of more than 7,000 neighborhood stores and exploring other distribution channels to increase awareness and demand for Bluetooth wireless technology-enabled products.

As new technologies are commercialized, the companies say they will leverage RadioShack's sales associates to bring these products to market in a timely, cost-effective manner during the early stages of adoption. In addition, the alliance includes leveraging Motorola's international reach to create distribution opportunities for RadioShack's licensed products outside of the U.S. market.

An initial outcome of this relationship is the announced deal between Motorola, RadioShack, and Mobility Electronics, Inc., a provider of portable computing solutions for the mobile electronics device user, to collaboratively distribute a range of universal power adapters to wireless carriers and distributors. These power adapters -- including mobile a.c. power, combination a.c./d.c. power, and cigarette lighter adapters -- will be based on Mobility's patented technology that enables a single power adapter to be used for a variety of consumer electronics products, including mobile phones, portable computers, personal digital assistants (PDAs), digital cameras, and CD players.

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