Now Motorola is 'fully committed' to mobile phones
Having floated a spinoff trial balloon for its struggling mobile phone business, has Motorola reconsidered?
Motorola sent a ripple through the mobile phone industry a few weeks ago when it released a statement saying it was "exploring the structural and strategic realignment of its businesses" that "may include the separation of Mobile Devices from its other businesses." The company has lost significant market share in the mobile phone business after failing to come up with an Act 2 following the success of the Razr.
Motorola CEO Greg Brown
(Credit: Motorola)But in Barcelona on Monday for the World Mobile Congress, new Motorola CEO Greg Brown told Reuters that the company is "fully committed" to its mobile device business. "I don't want there to be any confusion," he said, as he caused confusion.
At first glance, it sounds like Brown has made his peace with keeping the mobile phone business in-house, despite the demands of investor Carl Icahn that Motorola separate phones from the rest of its activities. "Motorola is fully committed to the mobile devices business and I am fully committed to mobile devices," he told Reuters.
But an analyst interviewed by Reuters noted that Motorola would have to be committed to the business in order to sell it. Most executives aren't going to just casually mention on-the-record to a reporter at a cocktail party, "Yeah, I'm looking to unload this thing the first chance I get. Do you know anybody?"
It's hard to imagine why Motorola would dump the mobile phone business because, despite its struggles, it still has pretty good brand recognition. And given the speed at which the phone industry moves, the company could be back firing on all cylinders just as quickly as its downfall led to the departure of former CEO Ed Zander.
But spinning off the unit could give investors a nice return from both the spinoff itself and the remaining company, which would be profitable. Few consumers realize that Motorola makes a host of wireless gear for businesses, as well as set-top boxes, but investors are familiar with those businesses.
Tom Krazit writes about the ever-expanding world of Internet search, including Google, Yahoo, online advertising, and portals, as well as the evolution of mobile computing. He has written about traditional PC companies, chip manufacturers, and mobile computers, spending the last three years covering Apple. E-mail Tom. 
looks as though someone designed the RAZR's interface after a
three day coke and whiskey bender.
It's premature for Motorla to throw in the towel.
quality mobile phones as well. somehow I feel that this is a segment of the phone market has been neglected by the nerds who dont seem to understand the vast majority of average users. one can only hope.
- Can you make a phone instead of a toy?
- by Stephen Russell February 12, 2008 6:18 AM PST
- Would you believe that there are MANY consumers who don't need a toy in their hand. They just want a phone that connects, has great reception and will keep contacts.
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(7 Comments)I don't need a browser every second of my life. I don't need to put earphones on to listen to music all the time either.
Why not make a phone for us? Probably 20 million consumers just like that. Make a large display so my mom can use it.