Motorola saying byebye to handphone business.

[redbeacon]

Motorola officially considering dropping its phone unit

 

NEW YORK, Feb 3 - Motorola Inc said its Chief Executive Greg Brown was taking direct control of the company's loss-making handset business, replacing Stu Reed, in a move aimed at helping speed up the unit's recovery.

 

A day before this takeover, Motorola announced that it was considering options including splitting off its mobile unit, which has been losing market share to rivals such as Nokia and Samsung Electronics .

 

Reed, who took over as head of the mobile phone unit last Summer, will stay at Motorola and work closely with Brown, spokeswoman Jennifer Erickson said on Sunday.

 

Motorola has been criticized for a weak phone line-up and failing to come up with a strong successor to its Razr phone.

 

So what happens now?

 

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.

 

 

Investment Forecast and Reports

 

The company also faces pressure from activist investor Carl Icahn, who has said he would nominate four directors for Motorola's board this year. Icahn said in a television interview on Friday that he wanted new management for the mobile division.

 

Greg Brown took over as CEO in January, replacing Ed Zander.

 

Motorola on Jan. 23 warned it may lose more market share and post an operating loss this quarter as its cellphone business is taking longer than expected to turn around.

 

It also backed off its forecast for its mobile devices division to return to profitability in 2008.

 

Motorola forecast a first-quarter loss per share from continuing operations of 5-7 cents, before restructuring costs. Analysts had expected a profit of 9 cents per share, according to Reuters Estimates.

 

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Oh no!! Why, motorola ?!?!

I've always like your phones, albeit being a bit hard to use.

[farish]

phone cannot make i..always hang...memory card always corrupted etc.......haiz...thank god coming 21 months liao.back to nokia

[natgw]

byebye moto.

[Maldini03]

lousy sms typing system when using the V3... sigh!!

[edition]

haha expected .. alway dun look up on their hand set

[sheep]

Glad i sold the V3 off long ago...

Anyway. The Asian population dun really fancy motorola

[w00t]

user unfriendly. and it suck.

 

good effort though.

[LordDevil]

motorola hp cmi.

[LimHammett]

sobzzzz....

 

i now using the V3xx phone..

 

simply loving it!

[redbeacon]

sobzzzz....

 

i now using the V3xx phone..

 

simply loving it!

Hi-5 bro!

 

Can't believe what was once popular amongst stars such as Beyonce Knowles and the phone being used in shows such as Prison Break, can now end in a downward-spiralling fate, just like Siemens mobile. I can't just bear to switch to Nokia lah...too ubiquitous and bulky-shaped.

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[Silas]

aiya they suck laa...

 

wont miss the moto.

[redbeacon]

Motorola has finally decided...

anecdotal news report via Engadget. March 26, 2008

 

http://img329.imageshack.us/img329/9489/unhappymotohi9.jpg

 

The board of directors has agreed to split Motorola into two independent, publicly-traded companies. The new entities will be called Mobile Devices and Broadband & Mobility Solutions.

 

The Mobile Devices business will focus on the design, manufacturing, and sales of mobile handsets and accessories globally. The Broadband & Mobility Solutions business covers Moto's enterprise, government, public safety, and home and networks business.

 

Greg Brown, Motorola's president and CEO, says the reason for the split is easy, "Creating two industry-leading companies will provide improved flexibility, more tailored capital structures, and increased management focus - as well as more targeted investment opportunities for our shareholders."

 

Thomas Ricker, contributor to Engadget, said, "Right, weren't those the reasons for the Palm split?" The matter is of course subject to regulatory approvals, but Motorola hopes that this planned split will complete "in 2009."

 

Editor's note to Motorola evangelists:

We're not sure whether this is a sad or happy news. Regardless, we went with sad until we see signs of a turnaround.

[fireshamie]

awh..kinda sad, cuz i quite like v8 cuz of the slimness & been thinking of buyin it when have the cash & price goes down..awh..oh well..

[fong]

damn.. still love my v3i.. used for 3 years liao haha

[allenkey]

i still remember motorola startac from 1998-99. coolest hp back then

[danielsin2]

Hello moto.

 

Now is byebye moto!

 

 

Wasnt a fan of motorola phones anyway.

[redbeacon]

 

Despite all that's said in this thread, Motorola isn't quite done yet though. Check this out:

 

http://img710.imageshack.us/img710/3646/motoroladroid.jpg http://img138.imageshack.us/img138/9052/motoroladroid2.jpg

 

This is Motorola Droid, and it's powered by Google's Android operating system just like the most of of the phones out in the market.

 

(it's called the Motorola Milestone in the UK and Europe)