Close
  • Latest News
  • Cybersecurity
  • Big Data and Analytics
  • Cloud
  • Mobile
  • Networking
  • Storage
  • Applications
  • IT Management
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
Read Down
Sign in
Close
Welcome!Log into your account
Forgot your password?
Read Down
Password recovery
Recover your password
Close
Search
Menu
eWEEK.com
Search
eWEEK.com
  • Latest News
  • Cybersecurity
  • Big Data and Analytics
  • Cloud
  • Mobile
  • Networking
  • Storage
  • Applications
  • IT Management
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
More
    Home IT Management
    • IT Management
    • Mobile
    • Networking

    Motorola: No Quick Fixes

    By
    ROY MARK
    -
    October 30, 2008
    Share
    Facebook
    Twitter
    Linkedin

      The slumping U.S. economy is dramatically changing the game plan at Motorola’s cell phone division, which is already dangerously gushing red ink. Although Motorola’s home and network mobility division and its enterprise mobility unit pulled decent numbers in the third quarter, cell phone sales posted an operating loss of $840 million to drag Motorola into an overall loss.

      In January, Motorola thought it had the answer: spinning off the cell phone division by 2009 into a separate company, as billionaire investor Carl Icahn has urged for more than a year. But Motorola co-CEO Greg Brown on Oct. 30 said that plan was dead in the water until the economy improves and the spinoff, if it happens at all, wouldn’t take place until at least 2010.

      “The environment just isn’t conducive to pursuing [the deal due to the] global economy and stressed financial markets, but we remain committed to that,” Brown said in a conference call with reporters and analysts.

      That leaves fellow co-CEO Sanjay Jha, who was brought in from Qualcomm in August to lead the spinoff, making a commitment to and a leap of faith with Google Android and Microsoft Windows Mobile as Motorola’s future operating systems for its mobile devices. Jha said Motorola would ditch at least four operating systems, including Symbian, to focus on developing midtier phones running Android and high-end enterprise devices operating on Windows Mobile.

      The problem for Jha and Motorola is the transition will take some time. Jha predicted it would take until the third quarter of next year to bring out a Windows Mobile phone targeted at enterprises and probably until the 2009 Christmas season before a Motorola-built Android phone could hit the market.

      By then, Apple and Research In Motion will have, no doubt, rolled out new iPhones and BlackBerrys targeting both the consumer and enterprise markets, swiping even more market share from Motorola. Meanwhile, Nokia, Samsung and LG Electronics will continue carving into Motorola. HTC is already producing Android phones for T-Mobile.

      While Motorola still clings to being the United States’ top cell phone maker, the iconic technology company has fallen to third in global sales behind Nokia and Samsung with LG close to pushing Motorola into fourth place. Apple’s wildly popular iPhone continues to grab consumer share while BlackBerrys are the overwhelming choice of enterprises.

      “The reality is, there is no quick fix here,” Jha said. “The platforms we have chosen will be capable of delivering better performance and a better experience.”

      The restructuring moves will save Motorola $600 million in 2009, Jha said. Although the Wall Street Journal reported Oct. 29 that Motorola plans “thousands of layoffs” associated with the restructuring, neither Brown nor Jha would confirm the layoffs. Motorola has already announced more than 10,000 job cuts since 2007.

      According to Jha, Motorola plans to establish a team in Seattle to more closely work with Microsoft, and Motorola is already working with Google’s engineers in California. For Jha and Motorola, which hasn’t had a hit phone since it introduced the RAZR almost five years ago, it’s all about the user experience.

      “Windows Mobile 6 has not delivered the experience that I think Apple has been able to deliver, but as you look at the plan that is Windows Mobile 7 and even 6.5, I think there are significant new added features which will help the platform,” Jha said. “We have now targeted new teams which are focused-in California and Seattle-to deliver experiences. That is where we have to differentiate.”

      Jha added there has been a “little too much focus on bright shiny objects [and] not enough focus on the user experience.”

      At least that’s what Jha and Motorola hope.

      MOST POPULAR ARTICLES

      Android

      Samsung Galaxy XCover Pro: Durability for Tough...

      CHRIS PREIMESBERGER - December 5, 2020 0
      Have you ever dropped your phone, winced and felt the pain as it hit the sidewalk? Either the screen splintered like a windshield being...
      Read more
      Cloud

      Why Data Security Will Face Even Harsher...

      CHRIS PREIMESBERGER - December 1, 2020 0
      Who would know more about details of the hacking process than an actual former career hacker? And who wants to understand all they can...
      Read more
      Cybersecurity

      How Veritas Is Shining a Light Into...

      EWEEK EDITORS - September 25, 2020 0
      Protecting data has always been one of the most important tasks in all of IT, yet as more companies become data companies at the...
      Read more
      Big Data and Analytics

      How NVIDIA A100 Station Brings Data Center...

      ZEUS KERRAVALA - November 18, 2020 0
      There’s little debate that graphics processor unit manufacturer NVIDIA is the de facto standard when it comes to providing silicon to power machine learning...
      Read more
      Apple

      Why iPhone 12 Pro Makes Sense for...

      WAYNE RASH - November 26, 2020 0
      If you’ve been watching the Apple commercials for the past three weeks, you already know what the company thinks will happen if you buy...
      Read more
      eWeek


      Contact Us | About | Sitemap

      Facebook
      Linkedin
      RSS
      Twitter
      Youtube

      Property of TechnologyAdvice.
      Terms of Service | Privacy Notice | Advertise | California - Do Not Sell My Info

      © 2020 TechnologyAdvice. All Rights Reserved

      Advertiser Disclosure: Some of the products that appear on this site are from companies from which TechnologyAdvice receives compensation. This compensation may impact how and where products appear on this site including, for example, the order in which they appear. TechnologyAdvice does not include all companies or all types of products available in the marketplace.

      ×