Motorola Set to Pull the Plug?

[Darius Wey]

<div class='os_post_top_link'><a href='http://www.appleinsider.com/articles/08/01/29/motorola_may_bow_out_of_cellphones_aid_apple_and_rivals.html' target='_blank'>http://www.appleinsider.com/article...and_rivals.html</a><br /><br /></div><i>"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. 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. 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. Instead, the American company is most likely to become profitable only after enduring a "very difficult" 2008. 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."</i><br /><br />Ah, there's nothing like a rumour to fuel your working day. Personally, I don't buy it, and unless it's coming straight from Motorola's mouth, it's not happening. Your thoughts on this one?

[mhynek]

I believe there may be partial truth to this story. I foresee them, eventually, leaving the consumer phone (only) market and concentrating on converged devices on a limited basis. Watching the trends, it appears to be the way technology is heading. However, how many years down the road before this happens is anyone's guess. Also, I could be completely wrong too. There are many people who still want a simple phone just to make the occasional call if they have to, like my parents. So, at this point, I'd have to say it's far too early to be able to reliably predict the future of Motorola. Besides, who's to say they don't have something spectacular up their sleeves that will rock the proverbial cellular boat as the iphone has? I won't get into the likelihood of that though. :) Anyway, this is just my contribution to the "pool of speculation". I'm curious to see what the rest of you think as well.

[Knocksock]

I agree with Darius, nice to feel the old heart pump with a rumour! :) Even if there is often some truth in rumours I'll wait 'till Motorola themself write a press release on this (even then I am sceptic to these PR agencies writing and publishing them).

If Motorola was to stop making slimphones, which they have experience in, why should they start making business phones which, as far as I know (I don't know Motorola that well), have no or little experience in ?