Motorola Casts Handset Business Off To Survive On Its Own

from the fly,-fly,-fly-away-little-razr dept

A few months ago there were rumors that Motorola might sell off its struggling handset division to another provider, however there didn't seem to be many interested buyers. It appears that Motorola has chosen option two instead: spin off the business to survive (or fail) on its own. The business accounts for the largest chunk of Motorola's earnings, but it is also a huge drag on earnings. Basically, the other parts of Motorola had been subsidizing the handset business. It's still rather amazing how slow Motorola is to come out with interesting handsets that people want. It had a huge success with the Startac in the 90s and then took nearly a decade before finding another hit with the RAZR. But just as with the Startac, it milked the RAZR concept for all it was worth and now is left in the dust while other firms are putting out much more innovative phones. Spinning off the business may separate it from the other parts of Motorola's business, but unless it starts designing phones people actually want, it's not going to make much of a difference.

Filed Under: handsets, spinoffs
Companies: motorola

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  1. identicon
    Jake, 26 Mar 2008 @ 10:17pm

    There's nothing wrong with the RAZR as a mobile phone, but doing anything useful with the GPRS function is next to impossible with the nine-button keypad, and after-market Bluetooth keyboards cost as much as the handset itself. Which is a real shame, because in all other respects it's a good design for someone who wants a phone with some decent personal organiser functions that isn't trying to pretend it's a laptop. Not charging an extra £14.95 for a CD with some drivers and a mini-USB cable wouldn't hurt either, especially since they crippled Bluetooth functionality.

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