Motorola leaned on Verizon for 28% of revenue in 2010

Motorola Mobility (NYSE:MMI) said it received 28 percent of its total 2010 revenue, or $3.22 billion, from Verizon Communications (NYSE:VZ) (including Verizon Wireless)--a figure that underscores the importance of Motorola's relationship with the nation's largest wireless carrier.

In a regulatory filing with the Securities and Exchange Commission, Motorola said that at the end of 2009 and the end of 2008, Verizon made up 17 percent and 13 percent of its revenue, respectively. Motorola, which primarily makes handsets and set-top boxes, also revealed that for the end of 2009 and the end of 2008, Sprint Nextel (NYSE:S) made up 13 percent and 7 percent of its revenue, respectively.

During 2010, aggregate net revenue from Motorola's five largest customers made up 49 percent of its total net revenue. Additionally, Motorola said that aggregate net revenues from the mobile devices segment's five largest customers, which included Verizon and Sprint Nextel, among others, represented around 57 percent of the segment's net revenues.

"The loss of, or a significant reduction in revenue from, one or more of these customers could have a negative impact on our business," Motorola said in its filing.

Motorola forecast a net loss of $26 million to $62 million for the first quarter. Motorola CEO Sanjay Jha said during the company's fourth-quarter earnings conference call, which came before Verizon officially launched Apple's (NASDAQ:AAPL) iPhone 4, that the Verizon iPhone is already slowing Motorola's sales. "We have seen some slowdown as a result of the announcement at Verizon," he said. 

To counter the Verizon iPhone, Jha is trying to expand distribution at other carriers. AT&T Mobility (NYSE:T) started selling the Motorola Atrix 4G, its newest flagship phone, for $199.99 with a two-year contract. The device also is being sold at and RadioShack for $149.99 and at Wal-Mart for $129.99. 

For more:
- see this Bloomberg article
- see this SEC filing
- see this Engadget post

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