MacDailyNews - Where Mac news comes first

 MacDailyNews Poll

5 Day Most Commented

Opinion Archive

Current Headlines

Latest Joy of Tech

  • Latest Joy of Tech!

MacNN

AppleInsider

Macworld UK

TUAW

MacRumors

Yahoo! Finance AAPL

iTunes Top 10 Albums

Mac OS X Downloads

Thu, Jan 08, 2009 - 08:15 AM EST  —  AAPL: 91.01 (-2.01, -2.16%)  |  NASDAQ: 1599.06 (-53.32, -3.23%)

KWTR: Motorola may give up on cellphones
Wednesday, January 30, 2008 - 10:00 AM EST

"After struggling for years to regain the success it had with the RAZR, Motorola may soon quit the cellphone industry altogether, according to research by a Nomura investment analyst," Aidan Malley reports for AppleInsider.

"Richard Windsor of the London-based firm explains that an investigation suggests Motorola would drop the segment entirely and instead focus on its enterprise and government sectors," Malley reports.

"Talks of a Chinese takeover, however, are an "old chestnut" that isn't likely to come true unless a buying firm knows how to mend Motorola's business, the analyst says," Malley reports.

"Motorola is already said to be suffering, and in the fourth calendar quarter of 2007 reported a 38 percent drop in its mobile device sales compared to the same period a year ago -- a stark contrast to an industry widely agreed to be growing over time. The departure of Ed Zander from Motorola's chief executive spot in mid-quarter is understood to have been partly driven by the increasingly poor results," Malley reports.

Full article here.

MacDailyNews Take: MacDailyNews Take: May 10, 2007, Motorola Chairman and then-CEO Ed Zander says his company is 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

  • Social Web
  • E-mail






Always -- Free ground shipping with orders over $50 at the Apple Store.

Reader Feedback: ( = registered)

Jan 30, 08 - 10:04 am Comment from: Buster

Are we going to hear the "Blood on the iPhone" headline?

Jan 30, 08 - 10:05 am Comment from: Buster

What? I am first? Are all you guys still in bed???? Wake up and smell the coffee people! There is reading to be done.

Jan 30, 08 - 10:14 am Comment from: Jim

Motorola Suck.

Jan 30, 08 - 10:14 am Comment from: lostspaceman

Yeah ok... The iPhone may be successful but c'mon people! Let's be realistic here. Moto is one of the biggest cell phone manufacturers in the world, so IF (and that's a stretch in my mind) they pull out of the cell phone business, it's not going to be because of the iphone. The iphone is still only available in 4 countries (still waiting for a Canadian release btw, if it ever comes), and I'm sure (i'll admit i haven't looked at numbers) that there are still many more moto phones than iphones.

Jan 30, 08 - 10:14 am Comment from: Spark

Motorola was such a strong player as one of the original cell phone manufacturers. The company really dropped the ball. The real failing came when they enabled the telcos to call the shots on functional features. They went from device designers to device contract manufacturers, and went there willingly closing their eyes to the ultimate consequences of ceding their future to the whims of the telcos. It is amazing that Apple was able to break that model. The iPhone has paved the way for more advanced handsets from all manufactures. Too bad Motorola, one of the pioneers of cell technology, won't be along for the ride.

Jan 30, 08 - 10:19 am Comment from: bioness

looks like a levono takeover of motorola's mobile phone market...

They can't just drop it, they'll just sell it

Jan 30, 08 - 10:21 am Comment from: John

HAHAHAHAH.....

Ahhh, Schadenfreude, how I've missed you wink

Jan 30, 08 - 10:25 am Comment from: @lostspaceman

The iPhone doesn't have to outsell Motorola phones to knock them out of the business. When people buy any product only because it's the cheapest box, that company is in trouble. The iPhone sells for $399. That puts the value of Motorola phones well under $100, and there's a lot less profit in cheap phones. Motorola has tried to sell more expensive phones, but why pay for one of them when you could get an iPhone?

Jan 30, 08 - 10:29 am Comment from: Mac+

This is sad.

Jan 30, 08 - 10:29 am Comment from: Sixvodkas

My Verizon contract (with a Motorola e815) expires in 4 days.

grin

Jan 30, 08 - 10:35 am Comment from: Macaday

So there's this disastrous scenario for Motorola. Losing money, shrinking etc etc.

So can someone explain why Apple shares have performed the same as Motorola's recently?

Not much justice really. But as I see last quarter growth in the US was just 0.6% I can understand there is some fear out there.

Then again, Apple recorded record results in the same quarter...

Jan 30, 08 - 10:38 am Comment from: MacSmiley

May I remind you, there are still lots of places the iPhone can't be used, because there is no AT&T;coverage. My cellphone is dying and it looks like I'll have to settle for a Centro. Feels like a consolation prize.

Jan 30, 08 - 10:38 am Comment from: en

Yep, I love it when MDN reposts those old and totally dumb quotes that CEOs are want to make in the heat of the moment.

grin

And of course everyone must have a keyboard cause its not a smart cell phone with out one. Microsoft, sticking with what it can force on us. grin

Jan 30, 08 - 10:41 am Comment from: Schuimpje

iPhone bitch...
(before anyone else says so)
Oh, for the matter, gotta love those iCal's....

Jan 30, 08 - 10:41 am Comment from: Jubei

HTC is next. They were so arrogant when the iPhone launched as to pimping their HTC Touch Flo as an equivalent to the iPhone. If not, better than the iPhone. Hilarious.

Jan 30, 08 - 10:42 am Comment from: shiva105

It's hard to believe a supplier as big as Motorola just quitting. According to their financial statements, they sold nearly 41 MILLION handsets in the last quarter (compared to ~2.1 million iPhones). People have to keep in mind that the vast majority of the market is still for less expensive devices than the iPhone. While the iPhone has some great features, not everyone needs them, or are willing to spend that kind of money.

Jan 30, 08 - 10:44 am Comment from: ken1w

> and instead focus on its enterprise and government sectors

What, exactly does Motorola have left in its business portfolio if it quits the mobile phone business? Just curious...

Jan 30, 08 - 10:45 am Comment from: Ampar

The Q is getting shorter.

Jan 30, 08 - 10:47 am Comment from: kenh

RE: "It's hard to believe a supplier as big as Motorola just quitting. According to their financial statements, they sold nearly 41 MILLION handsets in the last quarter "

Makes no difference. Did they make a profit on what they sold?

Of course, you could apply that old rule: We lose money on every piece we sell, but we make up for it in volume.

Works every time................uh............never mind!

Jan 30, 08 - 10:52 am Comment from: Ampar

To ken1w: "What, exactly does Motorola have left in its business portfolio if it quits the mobile phone business?"

Well, they do have a few things.

http://www.motorola.com/us/products.jsp

Jan 30, 08 - 10:53 am Comment from: G4Dualie

The biggest hurdle was getting rid of Zander, whose hubris couldn't save his job, especially in light of the fact that he had it right there in his hands, only to watch as the iPhone has gone on to become a game-changer.

Moto's board of directors will probably sell off the division to a private equity group who will rebrand the products under a new name.

Regardless of how big you may think Moto's cellphone consumer business is, it pales in comparison to the money they make from licensing their patented communications technology.

Jan 30, 08 - 11:32 am Comment from: cptnkirk

How prescient of his Steveness!

First the switch from Moto to Intel with some obviously unrevealed reasons. Then the launch of th eiPhone, a direct competitor to Moto.

How far ahead is he of the rest?

Jan 30, 08 - 11:53 am Comment from: pastrychef

I've never owned/used a single Motorola phone that I liked. I say good riddance.

They couldn't do PowerPCs right, they can't do cellphones right, they can't do anything right.

Jan 30, 08 - 11:55 am Comment from: HMCIV

Blood on my click wheel has never been a problem. Will Motorola's warm blood on my iPhone affect the multi touch?

Seriously though, there's still a large market for "simple" phones such as the RAZR. I suspect Motorola will relegate itself to that. When Motorolla concentrates on making a good PHONE they have a good track record.

Jan 30, 08 - 12:19 pm Comment from: Mac_Atty

THIS IS BULLSH**T: Motorola is STILL #3 in the Cell Phone Industry - still the preferred provider of cell phone technology to the U.S. military. MOTO isn't going anywhere. Don't believe the hype. Besides... what other cell phone maker besides Apple do instantly recognize the MAJORITY of their products by name (RAZR, SLVR, PEARL)?

Jan 30, 08 - 01:01 pm Comment from: G4Dualie

Bullshit? Not really. You underestimate the disdain Carl Icahn has for moto's handset space. In a put up or shut up moment, Icahn challenged Zander to turn a profit and in the Fourth quarter Moto posted an 84 percent loss!!

Zander is gone and now Icahn is urging Moto executives to dump the handset division and spin it off from the rest of moto before it brings the entire company down.

Sony-Ericsson is closing in on third-place and when Moto drops to fourth you will become a true believer.

Greg Brown, who is Zander's replacement has now reached his own Put up or Shut up moment with Icahn, wherein he intends to slash costs by 500 million by laying even more people off. (Zander already handed out pink-slips to 7,500 people before he was given his own.)

Now Brown is going to hire new programmers, use more Qualcomm chips, and begin selling two new phones in the hopes of restricting the hemorrhaging of money and guess who is standing in the shadows waiting for the slightest slip-up so that he can scream, "I told you so!"

The US military can't save motorola! And as far as brand equity goes, fancy names can't save a company or a rock band from failure in the market.

Jan 30, 08 - 01:24 pm Comment from: Unequivocal

They should have quit a long time ago.
The iPhone shows what a pile of utter CRAP all cellphones are.

Jan 30, 08 - 02:35 pm Comment from: Old Mac Man

<b>Yea I had a Razr...</i>

...then when the iPhone debuted I took a long hard look at it and decided...

...to buy another Razr.

OK SHOOT ME!!

But the Razr is slim, fits snuggly in my pocket and all I need is a reliable phone, a SECURE PHONE.

Recently I got *cough* arrested for some outstanding parking tickets (someone else's I'll prove it). Guess what the police searched?

Yep the phone. They didn't get shit with my Razr, BUT THE iPHONE ???

Police are nosey fscks, they want to have a idea what and how you make your living because poor people ARE EASY TO GET CONVICTIONS ON.

Plus alot of cops get their jobs to find out about people, to tell whom THEY REALLY WORK FOR (like the mob for instance) all about you, your contacts and vital information.

The iPhone is INSECURE, it's always being hacked, even from remote. Just carrying all your data around on a device like that is asking for trouble.

Jan 30, 08 - 03:23 pm Comment from: qka

focus on its enterprise and government sectors

As a volunteer firefighter, I can say that Motorola emergency radios used to be great, but current models suck.

I guess that won't save them either.

Jan 30, 08 - 04:01 pm Comment from: KRSTFR

"KWTR" absolute genius

Jan 30, 08 - 07:30 pm Comment from: LorD1776

"The iPhone is INSECURE, it's always being hacked, even from remote. Just carrying all your data around on a device like that is asking for trouble."

Yeah, and it's glossy too.

Jan 30, 08 - 08:33 pm Comment from: lostspaceman

Say all you want about the iphone. i wouldn't mind trying one I'm sure it's a great phone but i want everyone to think about something. Motorola has been making cell phones since the begining of cell phones and still ranks up there as far as cell phone manufacturers. There are only 4 countries in the worlk (US, UK, France, Germany) that currently have official support for the iPhone. Now as much of a surprise as it may be to ppl living in these countries, there are other countries on the planet that have cell phone technology (Gasp!) in which apple has no portion of the cell market at all. I live in one of those countries (What the hell is taking apple so ******* long to bring the iPhone to Canada?) and until it starts releasing the iPhone worldwide, companies like Motorola don't have all that much to worry about when markets like China and India have no iPhone support.

Jan 30, 08 - 10:43 pm Comment from: iLuvMyMacs

>Are we going to hear the "Blood on the iPhone" headline?


No but how about "Blood on the touch screen"

Reader feedback page 1 of 1 pages:

Always -- Free ground shipping with orders over $50 at the Apple Store.

Add Your Feedback:

Register or Login

Name:

Email: (optional)

Emoticons | Allowed HTML Tags

Remember my info   Notify me of follow-up comments?

Please enter the "MDN Magic Word" you see in the image below: