Motorola needs an heir to the RAZR -Gartner
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Motorola needs a successor to its  successful RAZR phone to hold on to market share, and BenQ  Mobile is set to make gains when new products kick in, market  research group Gartner said in a survey on Wednesday.
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The search for seamless mobility Comment Having seen off the challenge to his leadership from billionaire activist investor Carl Icahn, Motorola CEO Ed Zander is under renewed pressure as the company warns of a dismal second quarter and a full year of losses in the core handset unit.â¦
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InfoWorld - Motorola may spin off its handset business, the weakest part of a wireless giant that has seen hard times and a management shakeup in recent months.
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The handset maker is still having trouble turning its business around. The billionaire now has to decide what he will do.
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Sprint Nextel Corp. S.N, the No. 3   U.S. wireless provider, on Tuesday said it would begin selling   three slim phones from Motorola Inc. MOT.N in early November,   about two years after its biggest rival, Cingular Wireless,   started selling Motorola's popular Razr phone.
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Struggling cell-phone maker Motorola Inc. said Thursday it is considering separating the handset unit from its other businesses in an effort to snap a deep slump that has followed its meteoric success with the Razr.
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Motorola Inc , the world's No. 3 mobile phone maker, said on Thursday it is exploring strategic alternatives including a possible separation of its mobile devices business from other units.
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(InfoWorld) - A troubled Motorola has realigned itself as its criticalÂ cell-phone business slows down. The company sketched out the reorganization in a U.S. Securities and Exchange Commission filing Tuesday, two days before it is set to announce its second-quarter financial results. Last week, Motorola slashed its earlier revenue forecast for the quarter and predicted a larger loss, blaming lower phone sales. It also named a new chief of its mobile unit, Stu Reed. Other recent changes in the executive ranks have also rocked the company. Motorola is now split into three divisions: Mobile Devices, Home and Networks Mobility, and Enterprise Mobility Solutions. The company is moving its Good Technology mobile e-mail software business from the Mobile Devices division into Enterprise Mobility Solutions. Its carrier equipment business has been combined with home broadband products in the Home and Networks Mobility segment with the new enterprise unit focusing on private network products. The Home and Networks Mobility group is responsible for set-top boxes and digital video systems for carriers, home DSL and cable modems, and wired and wireless broadband network gear. The Enterprise group encompasses analog and digital two-way radio and other voice and data communications systems for government, businesses and Motorola's large public safety customer base. Good Technology, whichÂ Motorola acquiredÂ in a deal completed in February, is a mobile messaging platform with enterprise features like centralized lockdown of unwanted applications on the phone. It competes against Research in Motion's BlackBerry system and Nokia's Intellisync technology. After the rousing success of the slim Razr handset, which started out as a premium-priced bauble and quickly became a mass-market commodity, Motorola has had trouble coming out with an encore. A Razr 2 is expected later this year. New handsets from Nokia, Samsung, and LG Electronics had stolen the spotlight even before Apple's iPhone, which debuted June 29, became the talk of the industry. Meanwhile, sales for all makers have stagnated in higher-priced markets like North America and Europe while rising in lower-priced India and China, according to industry analysts. Last Wednesday, Motorola said it expected to report 35 million to 36 million handset sales in the second quarter, down from 45.5 million in the previous quarter. Its revenue forecast dropped from $9.4 billion to between $8.6 billion and $8.7 billion. The company now expects to lose between $0.02 and $0.04 in the quarter.
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A troubled Motorola has realigned itself as its criticalÂ cell-phone business slows down.
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Motorola's latest move against its rival is a lawsuit.
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Heavily reliance on Motorola is inadvisable at this point.
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Motorola executives said Friday that they would introduce a series of innovative new cellphones, rather than a âone-hit wonderâ like the Razr.
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The quad-band Motorola (NYSE: MOT) RAZR V3 from Cingular Wireless is an ultra-slim, GSM/GPRS messaging phone with an internal antenna that features a 2.2-inch, high-resolution color screen, a 3D graphics engine, a push-to-talk radio and global roaming capabilities courtesy of the onboard SIM card.
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After two years of success due to the RAZR phone, sales are now slumping, but Motorola hopes that new models will fuel a recovery next year.
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The day after announcing that 4,000 employees will be laid off, Motorola Inc. CEO Ed Zander told investors that he plans to boost profits with a wide range of multimedia handsets, instead of relying on a single blockbuster product like the Razr cell phone.
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Motorola may spin off its handset business, the weakest part of a wireless giant that has seen hard times and a management shakeup in recent months.The company is &quot;exploring the structural and strategic realignment of its businesses to better equip its Mobile Devices Business to recapture global market leadership and to enhance shareholder value,&quot; Motorola said in a statement Thursday. &quot;The company&#39;s alternatives may include the separation of Mobile Devices from its other businesses.&quot;The handset unit has had trouble coming up with a successor to the popular Razr phone, and in last year&#39;s third quarter it fell to third place in worldwide sales behind Samsung. But spinning off the division, which forms the largest part of Motorola&#39;s business, would be a drastic move.Motorola had 13 percent of the worldwide handset market in last year&#39;s third quarter, down from a 21 percent share a year earlier, according to Gartner. Samsung had 15 percent and Nokia 38 percent.Thursday&#39;s announcement doesn&#39;t guarantee the handset business will be spun off. CEO Greg Brown said in the statement that Motorola was exploring ways in which the unit can recover faster and retain and attract talent, plus help shareholders &quot;realize the value of this great franchise.&quot;In its fourth-quarter results announced last week, Motorola said the Mobile Devices Business lost $388 million on revenue of $4.8 billion, down from a profit of $341 million on revenue of $7.8 billion a year earlier. Fourth-quarter sales were up in both the Home and Networks Mobility group, which makes set-top boxes and wireless infrastructure, and in Enterprise Mobility, which benefitted from&#160;Motorola&#39;s acquisition of Symbol Technologies&#160;early last year.Motorola as a whole lost $49 million for the year.&#160;CEO Ed Zander stepped down in late November, replaced by Brown.
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(InfoWorld) - The day afterÂ announcing that 4,000 employees will be laid off, Motorola CEO Ed Zander told investors that he plans to boost profits with a wide range of multimedia handsets instead of relying on a single blockbuster product like the Razr cell phone. "We're not going to have another Razr. Every once in a while, something will pop, but there have been only three in recent years -- the Microtec, the Startec, and the Razr," Zander said Thursday in a webcast address at the Lehman Brothers Worldwide Wireless and Wireline Conference in New York. Now the company is preparing to launch products in Europe and Asia during June and July: theÂ Razr2 cell phone,Â Moto Z8 handset with a digital music player and mobile TV, Moto Q 9 mobile e-mail smartphone, and Rokr Z6, a handheld MP3 music player and cell phone. "So there are four of them, which proves we can still design some pretty wild things. But we need more of them at more price points with more geographies and more carriers," Zander said. A wider range of products will allow Motorola to focus on its twin strategies of selling low-end handsets in emerging markets such as the Middle East and southeast Asia through channel distributors and retail partners, and selling high-end handsets in Europe, China, and Japan. Zander acknowledged that competing vendors, such as Nokia and Sony Ericsson, have already gotten a start in those areas, but said Motorola will catch up fast with the widespread emergence of WiMax wireless networks in the U.S. "We're still very PC-centric with MP3 over here, we're very tethered. But in Europe and Asia and even Latin America, it's more of an over-the-air experience to download music and video. Hopefully, that will change in the U.S. as we get these networks installed in the second half of 2007 and in 2008." However, Motorola faces an uphill climb to regain its lost market share, according to a study released Thursday. Nokia surged forward on mobile phone sales in China and Japan during the first quarter of 2007, padding its dominant lead over competitors, according to Gartner. The overall industry sold 257.4 million units during the first quarter, a healthy growth rate of 14 percent over the same quarter last year, despite the annual post-holiday sales slump in Western Europe and North America, Gartner said. But Nokia outperformed its rivals, claiming 35.7 percent market share for a large lead over Motorola's 18.5 percent, Samsung's 12.5 percent, Sony Ericsson's 8.4 percent, and LG Electronics' 6.2 percent. Motorola suffered from stocking its channel resellers with excess products in the first quarter, forcing them to drop prices to push the phones into end-users' hands, Gartner analyst Carolina Milanesi said in the report. That problem will persist through the second quarter, but the company could rebound if there is strong demand for the Razr2, she said. Zander admitted the company had been tripped up when those slowing sales threatened to overwhelm corporate overhead costs. "The last few months have been very unsettling," he said. "January and February caught us by surprise, quite frankly. We did have to pull the trigger quickly with some headcount expenses, we had to get that done quickly." The latest layoffs came just four months afterÂ Zander announced a round of 3,500 job cuts in January. Together, the layoffs will allow Motorola to save nearly $1 billion every year, giving it the flexibility to increase funding for new areas of research in the fast-changing mobile handset segment, he said. But first, Zander faces the task of reassuring workers who were shaken by the downsizing. "I'm spending the better part of this week traveling around the country talking to employees because they get nervous. We have to get back on track," he said.