BYEBYEMOTO: Beleaguered Motorola’s Head of Mobile Devices unit joins exodus
Monday, March 10, 2008 - 01:55 PM EST "Trapped between a rock and a hard place, Motorola's new CEO Greg Brown is presiding over a new exodus of top executives while billionaire investor Carl Icahn increases pressure to break up the company and sell off the pieces," W. David Gardner reports for InformationWeek.Gardner reports, "Brown wants to sell off pieces of the company, too, but it's unclear whether anyone wants to pay what Brown and Icahn think they are worth. Nokia , Samsung, and LG Electronics -- all gaining handset market share on Motorola -- have said they aren't interested. And the once-glamorous mobile phone device market is now overcrowded. Last week, Mitsubishi said it would dispose of its unprofitable mobile-phone business and in January, Sanyo Electric said it, too, will leave the mobile phone business."
MacDailyNews Take: The once-glamorous mobile phone device market is now overcrowded? That's not really getting to the heart of the matter. The mobile phone device market is overloaded with mediocrity and worse, yes, but what's really happening is that consumers are finally being shown what "glamorous" really means.
"Motorola announced late Friday that Stu Reed, who had been in charge of Motorola's Mobile Devices unit, would leave the company 'effective immediately.' Last month, Brown had taken over direct control of the Mobile Devices unit from Reed, who had run the operation for just a few months well after Motorola's handset market share began declining," Gardner reports. "Just days before Reed's departure, it was revealed that the company's top marketing leader, Kenneth 'Casey' Keller, had left the firm."
Full article here.
MacDailyNews Take: That's what you get when you rest on your laurels and fail to innovate. Right, Palm?
May 10, 2007: Motorola Chairman (until May) and then-CEO Ed Zander said his company was ready for competition from Apple's iPhone, due out the following month. "How do you deal with that?" Zander was asked at the Software 2007 conference Wednesday in Santa Clara, Calif. Zander quickly retorted, "How do they deal with us?" - IDG News Service
It took just a year for Zander to lose both his CEO and Chairman positions. Take a look at Motorola today, Ed. That's how Apple dealt with you. Any more questions?


What we're seeing is just a shaking out of the "Me Too" companies, those corporations which thought they could slap together a few keys, screen, and phone innards and make money. The real players are those who truly innovate.
Just look at Moto: They were very successful with the RAZR (which is really just a slimmer version of the old Star-Tac), but it became stale and other handset manufacturers caught up and passed it.
The real problem is that handset manufacturers think that innovation means some new physical eye-catching feature. Those are great, but when the OS takes forever to navigate through, people don't fall in love with their phones. So they don't mind moving on to the latest, greatest phone (offered at a reduced rate or free with their next phone contract in the US).
Very little brand loyalty exists, particularly because many of the phones are branded by the service providers, and users may not even know who makes their phone.