Motorola may just leave the mobile phone business
January 30, 2008 by Jayvee Fernandez
Filed under Cell phone, Mobile Monitor, Motorola
Analysts say that Motorola may be destined to leave the mobile phone market. The last hurrah would be an acquisition from a Chinese company (i.e. how Lenovo moved into IBM) to help fix things. Thing is, the Chinese have no idea what to do to fix Motorola, as reported by Richard Windsor of Nomura. Sad. Instead, Motorola will be focusing efforts on their other infrastructure projects, which is really their strongest arm.
I remember attending a press conference for Motorola as they outlined their plans for government and private sector infrastructure development. These products include networks, WiMAX solutions and their mesh radio system for calamities. These products seemed way too far out and stable compared to what they were doing with their mobile phone division. I mean, what sold the RAZR wasn’t the UI – it was the form factor which really didn’t follow through as time passed. New models consisted of … new colors and that was it.
Not sure what happened here, must have been lack of investment in new products and low margins on handsets