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New reports indicate that Motorola may be leaving the mobile phone industry and/or may be bought by Chinese investors

Motorola enjoyed record success in 2005 with the release of the RAZR, which went on to sell 110 million units and boost the company to the number two position in handsets behind Nokia.  Since that time, Motorola has struggled to match this epic success. 

Motorola first tried to boost sales in 2006 by cutting prices, which led to a sharp drop in profits.  This in turn led to "cost-savings" in 2007, which basically equated to closing hardware and software development locations and cutting jobs

In Q4 2007, Motorola closed the year with a $1.2 billion USD loss.  The company's handset share also sunk in 2007 from 23% to a meager 13%.

Now there are reports that Motorola may be looking to cut its losses and leave the handset market entirely.  This would leave an uncertain fate for the company's more popular lines such as the new RAZR and the Sidekick.  These products and their engineering and support staff could be sold off to competitors or simply reassigned to different projects, keeping only a bare minimum for product support.

If Motorola exits the headset business, it will likely focus on becoming a government and enterprise company, said Richard Windsor, an analyst with Nomura International in a note to his clients released Tuesday.

There is also separate speculation that a Chinese buyout of the Illinois-based Motorola is forthcoming, but Windsor says this is unlikely.  He says that Chinese vendors do not have the expertise needed to deal with Motorola's software, hardware, and marketing woes, so both sides may be reticent to make a deal.

Motorola currently offers several competitive music phone-related headphone products, featured in last year's Holiday Guide at DailyTech.  These lines also share an uncertain fate if the handset business is phased out. 

Motorola is also involved heavily in the microprocessor, embedded computing, two-way radio, and networking markets.  Motorola was previously involved in the government sector, until 2001 when it sold off its defense holdings to General Dynamics.

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RE: Lack of Innovation
By Serafina on 1/29/2008 3:10:04 PM , Rating: -1
Sony make the best cell phones out there you retard. And why would Nokia or Motarolla make phones for them when they are the competition.

Stop being a blind sony hater, no wonder you have a crappy car in your name, you were probably dropped on your head when you were a kid.

RE: Lack of Innovation
By FITCamaro on 1/29/2008 4:37:33 PM , Rating: 1
Yes and you probably smoke crack and live off welfare. I can call you names too.

Fact is, I saw an article a few years back about how, due to poor sales, Sony Ericsson was going to have another company design its phones. Now, maybe things have changed. But that was the last I heard of it.

And I own Sony products. I have both a Cybershot camera and a PSP. I'll eventually be getting a PS3 when I deem it worth the money.

I do believe that many Sony products are overpriced and similarly featured compared to the competitors though. Things like their home theater systems are extremely poor with them usually featuring built in, fixed length, crappy wires for the speakers instead of letting you buy higher quality wire to use and cut it to the length needed. Yamaha's systems are far better and less expensive if not quite as sleek. Their computers are also mostly overpriced and under-featured compared to others. Their TVs are good but again, you can usually find a similarly featured model from other manufacturers for less money.

"And boy have we patented it!" -- Steve Jobs, Macworld 2007

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