KWTR: Motorola may give up on cellphones

“After struggling for years to regain the success it had with the RAZR, Motorola may soon quit the cellphone industry altogether, according to research by a Nomura investment analyst,” Aidan Malley reports for AppleInsider.

“Richard Windsor of the London-based firm explains that an investigation suggests Motorola would drop the segment entirely and instead focus on its enterprise and government sectors,” Malley reports.

“Talks of a Chinese takeover, however, are an “old chestnut” that isn’t likely to come true unless a buying firm knows how to mend Motorola’s business, the analyst says,” Malley reports.

“Motorola is already said to be suffering, and in the fourth calendar quarter of 2007 reported a 38 percent drop in its mobile device sales compared to the same period a year ago — a stark contrast to an industry widely agreed to be growing over time. The departure of Ed Zander from Motorola’s chief executive spot in mid-quarter is understood to have been partly driven by the increasingly poor results,” Malley reports.

Full article here.

MacDailyNews Take: May 10, 2007, Motorola Chairman and then-CEO Ed Zander says his company is ready for competition from Apple’s iPhone, due out the following month. “How do you deal with that?” Zander was asked at the Software 2007 conference Wednesday in Santa Clara, Calif. Zander quickly retorted, “How do they deal with us?”IDG News Service

33 Comments

  1. Yeah ok… The iPhone may be successful but c’mon people! Let’s be realistic here. Moto is one of the biggest cell phone manufacturers in the world, so IF (and that’s a stretch in my mind) they pull out of the cell phone business, it’s not going to be because of the iphone. The iphone is still only available in 4 countries (still waiting for a Canadian release btw, if it ever comes), and I’m sure (i’ll admit i haven’t looked at numbers) that there are still many more moto phones than iphones.

  2. Motorola was such a strong player as one of the original cell phone manufacturers. The company really dropped the ball. The real failing came when they enabled the telcos to call the shots on functional features. They went from device designers to device contract manufacturers, and went there willingly closing their eyes to the ultimate consequences of ceding their future to the whims of the telcos. It is amazing that Apple was able to break that model. The iPhone has paved the way for more advanced handsets from all manufactures. Too bad Motorola, one of the pioneers of cell technology, won’t be along for the ride.

  3. The iPhone doesn’t have to outsell Motorola phones to knock them out of the business. When people buy any product only because it’s the cheapest box, that company is in trouble. The iPhone sells for $399. That puts the value of Motorola phones well under $100, and there’s a lot less profit in cheap phones. Motorola has tried to sell more expensive phones, but why pay for one of them when you could get an iPhone?

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