Motorola joins the growing list of companies taking aim at Chinese manufacturers. Recall, last week it was Hanwha: Chinese Products Damaged Industry and the week prior it was Axis: "It’s A Question Of Trust And Who You Want To Be Associated With".
Motorola's CEO explained on the investor's call about the Avigilon acquisition:
I think there is a growing aversion to having Chinese provider to critical video surveillance and security and I think that trend will lend itself well to us as well. [emphasis added]
And the incoming Avigilon CEO concurred in this interview [link no longer available]:
"Ultimately end users are deciding for themselves what products and solutions they feel most comfortable with," Mr. Henderson told The Globe and Mail. "What we're seeing now given the current times is there's an increased focus on domestically made products, of which Avigilon has been a big believer for quite some time, manufacturing in Canada and the U.S." [emphasis added]
Here are some dynamics we expect following the deal: