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Thursday, January 31, 2008 | 10:40pm

BREAKING NEWS: Motorola Dumping Mobile Phone Division

Posted by Juan

Bye Bye RAZR

 razr.jpg

This is simply Huuuuuge news! This afternoon Motorola issued a press release that it’s:

“…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. 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.”

Like Nas said, “Aint hard to Tell.” This means only one thing…they’re dumping mobile phones.  Corporate American has become very experienced at this technique of using “strategic explorations” to ostracize an underachieving unit thus putting it on the market for sale or liquidation.

Can we all be surprised however?! 1o years ago Motorolo was completely on top with their Startac.  However the company failed to grow as the market grew.  Even their most recent and highly marketed design, the RAZR is an updated version of the Startac model.  According to UnwiredView.com the phone division lost over a billion dollars last year…you can’t loose that kind of cash and expect to maintain the support of your corporate headquarters.

We’ll see in coming months what will happen but one thing is clear the Motorola phones are a thing of the past.  Look for a corporate buyout or perhaps a competitor taking a flier on the distressed company.

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Juan »
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