'Hello? I'm Doing Better Than Expected'...Once Rival Companies That Mocked Samsung and Apple [Tech Talk]

iRiver and Motorola Struggling to Adapt to the Smartphone Era
Each Successfully Pioneers New Markets Through Their Own Innovations

Today, the largest product in the communication device market is the smartphone. Additionally, the global smartphone market is largely divided between Apple and Samsung. However, just over a decade ago, the electronics market could be described as a true "Age of Warring States." Numerous large and small companies competed by launching various innovative products. Motorola, a powerhouse in communication technology, and iRiver, a first-generation Korean venture legend, are representative examples.

These two companies are typical cases that were overshadowed by the powerful rivals Apple and Samsung after the birth of smartphones. However, although their visibility to general consumers has somewhat diminished compared to before, they still survive.

iRiver, pushed out of audio, revived through audio

Dreamus Company (formerly iRiver)'s premium audio equipment brand 'Astell&Kern' [Image source=Astell&Kern official website]

As smartphones became widespread, the first victim was the digital music player, commonly known as the 'MP3 player.' Nowadays, except for a very few products, MP3 players have been completely integrated into software within mobile phones.

iRiver is a Korean venture company that was founded during the early days when MP3 players were emerging and enjoying a brief heyday. It was established in 1999 by seven engineers who previously worked at Samsung Electronics, and at one point, it held the number one position in the flash memory MP3 market, earning it the title of a "first-generation venture legend." In fact, Apple, which launched the 'iPod,' was a latecomer chasing iRiver.

However, intense competition with rivals like Apple and the rapid market contraction following the advent of smartphones brought iRiver into crisis. It was acquired by SK Telecom in 2014 but continued to suffer losses for 21 consecutive quarters afterward.

The savior for iRiver, which was on a downward path, was also 'audio.' Although the MP3 player market shrank, the number of consumers craving 'high-quality audio playback' increased. Digital music players suffer audio loss during the process of converting music into digital files, but iRiver sought differentiation through high-quality, high-end products and software that minimized these drawbacks.

Since 2019, iRiver has changed its company name to Dreamus Company and has transformed into a comprehensive 'audio entertainment company' by manufacturing lossless audio players and managing music platforms.

Motorola, the 'Apple of the security industry'

Motorola Solutions does not simply manufacture walkie-talkies. It provides security solutions encompassing entire communication systems and surveillance equipment, creating a business domain akin to Apple in the security electronics industry.
[Image source=Motorola Solutions]

Motorola, a traditional powerhouse in the communication industry, is also considered one of the companies that failed to adapt to the smartphone era. In fact, last year, Motorola's ambitious foldable smartphone, the 'Razr 40,' sold only a few hundred units domestically, resulting in an unexpected humiliation. Even in its home country, the United States, its market share is around 10%, ranking third behind Apple and Samsung Electronics.

However, the business area where Motorola truly makes money today is not smartphones but the security market. Motorola Solutions is already the number one in the Western world in closed-circuit television (CCTV), two-way radios, and disaster communication networks.

Motorola has been a 'communication technology company' investing in wireless network technology since the mid-20th century. This background enabled it to pioneer the wireless communication device market, including mobile phones.

However, wireless network technology truly shines in extreme environments. In situations where general communication networks are destroyed by major disasters such as earthquakes and fires, robust and always-operational two-way radios are essential. This is a product category almost monopolized by Motorola Solutions.

Today, Motorola Solutions provides a 'technology ecosystem' that goes beyond general two-way radios to encompass disaster site surveillance equipment and overall command and control systems. Just as Apple attracts consumers with various electronic products surrounding the iPhone, Motorola signs contracts with police, fire departments, and governments.

Last year, Motorola Solutions posted solid results with sales of $10 billion (approximately 13.8 trillion KRW) and operating profit of about $2.3 billion (approximately 3.1742 trillion KRW). Among these, two-way radio sales alone accounted for more than $7 billion (approximately 9.66 trillion KRW), demonstrating robust demand.