- Thursday, 12 November 2009
- INQ Mobile
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Automatic simply means that you can't repair it yourself - Frank Capra
Moto could sell phones unit
MOTOROLA HAS long been an icon of the US’s technology might but now the firm could sell off the handset business that is its beacon operation.
Moto confirmed that it is considering its options in a statement yesterday, saying they include a “separation” of the mobile device unit.
The Wall Street Journal says that ubiquitous investor Carl
Icahn is leading the push for sale or spin-off of mobile devices. A move in that
direction would leave Moto to focus on its other operations in wireless networks
and business solutions but denuded of the products that give its brand global
recognition.
In a statement, Greg Brown, Moto’s CEO, said “We are exploring ways in which our Mobile Devices Business can accelerate its recovery and retain and attract talent while enabling our shareholders to realise the value of this great franchise.”
Motorola management said that it is only exploring the idea but a U-turn now would look unseemly.
Moto CEO and former Sun Microsystems man Ed Zander stepped down late last year as the handset business continued its tailspin. µ
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The writing was on the wall with Nokia's latest earnings report. Cellular phones are increasingly becoming low margin commodities. While it is true that you may be able to sucker a few million into buying loaded "superphones" in their initial release year (iphone, n95, etc), after the first year, the prices are usually slashed, and in two years, those units themselves become commodities.

In the mature markets, we are at the point where people replace their phones at slower rates, meaning that profit growth must be driven by "emerging markets." News flash: Developing countries' citizens aren't buying $400 iphones. They're buying $40 handsets they can do voice and text with. Nokia recognized this and are making a killing in this segment. 

The game is over. Moto should bail on this low margin market.
and you know what is wrong with motorola fones - their user interface experience is horribly wrong (in my opinion) - go figure sony ericsson or apple in this department
good news! they made crappy phones anyway.
I still love my Razr. Best phone ever in my opionion. It just works and works well. And fits nicely in your pcket. If you just need a phone that works...This is it!
I never liked their phones either. Maybe they are targeted only at women?