Just another WordPress weblog

It is not a good time to be Motorola. First off, they don’t have the iPhone. Second, they don’t have an iPhone killer — and no, the RAZR 2 doesn’t count. They were looking to spin off their handset division, but it’s starting to look like they’re going to sell. Which isn’t necessarily good, since at least one analyst thinks that they could sell for just $500 million. I suppose that’s what you get for making the same handset over and over again. Yet, the news gets worse.

While they should remain the No. 4 world handset provider through the first half of 2008, Motorola is expected to slip a bit in the second quarter. This could allow, according to the Taiwanese handset industry, Sony Ericsson to take the fourth slot for the quarter, moving Motorola to fifth. They are only expected to ship 22 to 23 million units in the quarter, while Sony Ericsson should ship 24 million.

This slippage could clearly play into any possible spinoff or sale of the company. So what is Motorola best off doing, selling off their handset division or investing the time, effort, and money to rebuild it? That’s not an easy one to answer. If they choose the latter and try to rebuild themselves, though, may I offer some friendly advice? Don’t make yet another device with four capital letters. We’re so over that.

Share on Facebook | Add to De.licio.us | Digg This! | Technorati