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Motorola tightens belt again, changes 3G chip supplier

Michael Caputo

In an effort to introduce yet more cost saving measures, Motorola has announced that it will change its 3G chipset supplier from Qualcomm to a combination featuring both Texas Instruments and Freescale (a spinoff of Moto, coincidentally). Motorola hopes to achieve lower manufacturing costs while increasing margins for its shareholders by changing chip suppliers away from Qualcomm. We think it might be beneficial for Qualcomm to rethink its royalties game plan starting -- now.

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