“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
Are we going to hear the “Blood on the iPhone” headline?
What? I am first? Are all you guys still in bed???? Wake up and smell the coffee people! There is reading to be done.
Motorola Suck.
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.
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.
looks like a levono takeover of motorola’s mobile phone market…
They can’t just drop it, they’ll just sell it
HAHAHAHAH…..
Ahhh, Schadenfreude, how I’ve missed you
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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?
This is sad.
My Verizon contract (with a Motorola e815) expires in 4 days.
So there’s this disastrous scenario for Motorola. Losing money, shrinking etc etc.
So can someone explain why Apple shares have performed the same as Motorola’s recently?
Not much justice really. But as I see last quarter growth in the US was just 0.6% I can understand there is some fear out there.
Then again, Apple recorded record results in the same quarter…
May I remind you, there are still lots of places the iPhone can’t be used, because there is no AT&T;coverage. My cellphone is dying and it looks like I’ll have to settle for a Centro. Feels like a consolation prize.
Yep, I love it when MDN reposts those old and totally dumb quotes that CEOs are want to make in the heat of the moment.
And of course everyone must have a keyboard cause its not a smart cell phone with out one. Microsoft, sticking with what it can force on us.
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iPhone bitch…
(before anyone else says so)
Oh, for the matter, gotta love those iCal’s….
HTC is next. They were so arrogant when the iPhone launched as to pimping their HTC Touch Flo as an equivalent to the iPhone. If not, better than the iPhone. Hilarious.
It’s hard to believe a supplier as big as Motorola just quitting. According to their financial statements, they sold nearly 41 MILLION handsets in the last quarter (compared to ~2.1 million iPhones). People have to keep in mind that the vast majority of the market is still for less expensive devices than the iPhone. While the iPhone has some great features, not everyone needs them, or are willing to spend that kind of money.
> and instead focus on its enterprise and government sectors
What, exactly does Motorola have left in its business portfolio if it quits the mobile phone business? Just curious…
The Q is getting shorter.
RE: “It’s hard to believe a supplier as big as Motorola just quitting. According to their financial statements, they sold nearly 41 MILLION handsets in the last quarter “
Makes no difference. Did they make a profit on what they sold?
Of course, you could apply that old rule: We lose money on every piece we sell, but we make up for it in volume.
Works every time…………….uh…………never mind!
To ken1w: “What, exactly does Motorola have left in its business portfolio if it quits the mobile phone business?”
Well, they do have a few things.
http://www.motorola.com/us/products.jsp
The biggest hurdle was getting rid of Zander, whose hubris couldn’t save his job, especially in light of the fact that he had it right there in his hands, only to watch as the iPhone has gone on to become a game-changer.
Moto’s board of directors will probably sell off the division to a private equity group who will rebrand the products under a new name.
Regardless of how big you may think Moto’s cellphone consumer business is, it pales in comparison to the money they make from licensing their patented communications technology.
How prescient of his Steveness!
First the switch from Moto to Intel with some obviously unrevealed reasons. Then the launch of th eiPhone, a direct competitor to Moto.
How far ahead is he of the rest?
I’ve never owned/used a single Motorola phone that I liked. I say good riddance.
They couldn’t do PowerPCs right, they can’t do cellphones right, they can’t do anything right.
Blood on my click wheel has never been a problem. Will Motorola’s warm blood on my iPhone affect the multi touch?
Seriously though, there’s still a large market for “simple” phones such as the RAZR. I suspect Motorola will relegate itself to that. When Motorolla concentrates on making a good PHONE they have a good track record.
THIS IS BULLSH**T: Motorola is STILL #3 in the Cell Phone Industry – still the preferred provider of cell phone technology to the U.S. military. MOTO isn’t going anywhere. Don’t believe the hype. Besides… what other cell phone maker besides Apple do instantly recognize the MAJORITY of their products by name (RAZR, SLVR, PEARL)?