As far as I know they need to give some strong name to boys and since Muhammed is considered the most important prophet they use that name a lot.

I had this guy that was a muslim from a muslim country, I forgot his name, it was one of the new hires, part of the diversity push at the company and I asked about it and he told me the reason above, he also told me that he would just call everyone 'hmed since it covered all the variations.