Motorola Spits Out Handset Business

    March 26, 2008
    WebProNews Staff

The bitter taste of disappointing profits in Motorola’s handset operations will be spun off as the electronics manufacturer tries saving itself by splitting into two companies.

Other than the RAZR, the swiftly-copied slim flip phone introduced by Motorola four years ago, the company has been a non-factor in the eyes of the cellphone buying public. Nokia continues to lead the world, while Apple’s iPhone reigns as the coolest mobile device.

Compared to Motorola’s unsexy line of handsets, Nokia and Apple look like the phones people want to own and be seen with by others. Motorola will have the chance to redefine itself next year after breaking up into separate operations.

A Bloomberg report cited pressure from investor Carl Icahn, who wants to see Motorola give the handset business a new start with fresh management. The billionaire owns 6 percent of Motorola.

Motorola’s troubles might be a contributor to the woes suffered at Sprint, where subscriber numbers have dropped and left the wireless carrier behind its competitors. Potential customers browsing the available phones online at Sprint and other carriers might find Sprint’s Motorola-dominated lineup less appealing than those from other carriers, especially the iPhone at AT&T

If Motorola really wants to compete, they need to dump both the ancient clunky handsets and the multitude of RAZR clones, and concentrate on crafting phones with a wow factor. That may seem unfair from a technology standpoint, but people focus on look and style more than an enormous, under the hood advantage.