Forget dropped calls. Motorola may be dropping itself.
It seems the besieged electronics company is entertaining the notion of breaking itself up through a potential sale or outright discontinuance of its floundering mobile phone business.
Motorola’s already dwindling profits decreased an additional eighty-four percent in the final quarter of 2007. Although the Razr has sold more than fifty million units worldwide, Motorola has failed to capitalize on their success by not marketing a broader scope of trendsetting handsets.
It is easy to deduce from browsing Motorola’s current product line that its technology comes up short in satisfying the ever growing demand for multimedia functions in North America and Europe.
It comes as no surprise that Motorola has announced a forthcoming “structural and strategic realignment” to resuscitate its handsets division. “The company’s alternatives may include the separation of mobile devices from its other businesses in order to permit each business to grow and better serve its customers,” the company revealed.
Needless to say, these broad possibilities, which include a possible dissolution of their mobile phone division, could very well impact the much broader mobile phone industry. In 2007, Motorola slipped from second to third place in the world, behind Samsung and the mobile industry leader, Nokia.
Motorola’s revelation came on the heels of growing rumors of a sale of its mobile phone division originally published by an analyst at Nomura, who suggested that a potential Chinese buyer is looking to acquire the business.
Although Motorola could surprise everyone with a comeback effort and a new line of advanced mobile phone products, the chances of that happening are “razor” thin.
Pun intended.
