Motorola Hangs Up on Handsets It is a stunning move by the pioneering name in mobile phones and the best data yet about just how deep the company's problems run: Motorola announced late Thursday that it is seeking alternatives for its handset business that likely will mean a sell-off of the division. You gotta hand it to Richard Windsor at Nomura International who, earlier this week, issued a note to clients suggesting this is exactly what would happen. He nailed it. Motorola has consistently, and stunningly, yielded key competitive ground to rival Nokia, which itself posted a very strong quarter last week. Not to mention its failure to capture any meaningful traction in so-called "smart phones" where Apple is seeing nice success with its iPhone, and Research in Motion continues to enjoy robust Blackberry sales. Pablo Perez-Fernandez at Global Crown Capital tells us late today that the move is a good one for the short-term, but longer term it probably won't mean much. I mean, who's going to buy it? And why? The handset business has been an albatross ever since the company was unable to come up with a follow-on success story to the RAZR. In fact, the issues were so dire that they ultimately cost Ed Zander his job, and led top lieutenant Ron Garriques to get a job with Dell. Now, new CEO Greg Brown has apparently convinced the board that such a strategic move is precisely what Motorola needs in order to usher in the next chapters of its story. Brown says in a release, "We are exploring ways in which our Mobile Devices Business can accelerate its recover and retain and attract talent while enabling our shareholders to realize the value of this great franchise." But the company acknowledges that one of the options is to separate Mobile Devices from its other businesses. Motorola Hangs Up on Wireless Handsets - Tech Check with Jim Goldman - MSNBC.com
The handsets are all made in china anyhow. Its not like the moto is still pumping out quality like the old analog bag/brick made in the usa. Its kinda sad the way they have gone. moto always had a good rep for quality among radio users in general. Sellouts...
Wow, that's sad to hear Motorola is thinking about dropping their phone division . But phones have turned into a cutthroat business the last few years, with all the new Asian manufacturers cranking out cheap and flashy phones. If Moto's income is 50% from mobile phones, then that's a risky and volitile place to be. One day you make a good phone like the RAZR or iPhone and you're on top. Then you fail to follow up the next year, and your bashed and bleeding. Sounds like Motorola is due for some restructuring. Maybe they can merge with some other company and keep making handsets, kind of the way Ericsson merged with Sony for making phones, but kept the network side seperate. ...sounds like this Icahn cares only about short-term stock profits
Wirelessly posted (Walkguru's: Nokia6555b/2.0 (03.31) Profile/MIDP-2.1 Configuration/CLDC-1.1 UP.Link/6.3.1.17.0) Im shocked, sad day indeed.
Didn't Motorola spin off Freescale Semiconductor to focus on cell phones? They're running out of businesses. China's picking up the network infrastructure market as well. Five or ten years there may not be a Motorola.
I'm really not surprised to see this. Motorola has been consistently going downhill in terms of handsets and quality over the past few years. The 'swan song' for that company was the razr... and didn't I just read that the razr has a twenty something percent failure rate?
Take that you hard core Moto defenders. Here is another one...... Motorola May Separate its Cell Phone Business - Telecom Mobile * Technology * News * Story - MSNBC.com PS: my first mobile phone in 1977 was a Motorola.
This was the first thing I read this morning when I got to work. I'm not really sure what to say at this point except, "Let's see where we end up."
If you read more on that thread you'd see that I calculated that the portion of the failed phones were described as "Unexplainably bricked" I figure these were mostly failed modding attempts. I calculated the actual failure rate at closer to 7 or 8%, and the failed modding rate at 11%. -Jay
This might be a good buy for one of the Chinese companies. It'd be an opportunity to buy access to Motorola's customers.
i hope that Motorola does not sell its cell phone division. yes they are made in china now days it is called free trade cheap cheap labor. i don't see where Motorola has any more hand set trouble than any other brand of phones i have all ways had good service from Motorola phones even the old style charging port i have only had one charging port fail and that was a startac and a alltel tech fixed it while i waited about fifteen minutes just a solder joint. i will say that i like Motorola phones and probably keep using them in the years coming why change when it is working for you. i did try a LG vx 5550 one time and it froze up and uscc gave me another new one and it did the same thing so thats when i got my Motorola v710.
Well after the success of the razr I think they tried to play that card to long and it bit them in the behind. But I to hope they dont sell this because I have a moto and love the thing.
Just as soon as I start to like a dependable phone maker ... My mom has used a V325 for almost 2 years mostly problem free. The phone made me like motorola... I am really liking my Q, the signal is better than the last Samsung I've owned; I am not ready to let go of my Moto yet. I just hope the wireless side doesnt go down the drain ... I wouldnt want some cell phone newbie to snap it up.
....and I was thinking about buying a RAZR2 in the spring. If the situation is that shaky at Motorola, they may no longer be interested in continuing support and stop doing firmware updates.
I seriously wouldn't worry about that. Whoever they merge with or buys them out will be obligated to provide support for Motorola's current products. And buyout or merger probably won't happen for at least 1-2 years anyway....
gotcha. i know quite a few people who had modded razrs... that probably has a lot to do with that number
. I hope Motorola can pull it together. I just got their Moto RAZR W490 & previously had a Moto RAZR v3 - good stuff. I like um.' Best. TB imo
well thats a shocker! so whats moto gona do now? And what cellphone manufacter is still making phones in the us? cant beat the us phone, there big, tough and powerful! (microtac)
I hate to break it to you, but Moto (and everyone else) has been manufacturing their handsets in China the last few years. Nobody stateside can compete price-wise with Asian kids making $1 per hour. Child labor is banned in the USA, but if it's outsourced then it's OK I guess :badidea: Actually, I'd happily pay more for a solid phone knowing it was made in the US of A atriot:
