Motorola - the road ahead

The story of Motorola is something that has always amazed me. I mean, a profit of over $340 million in one year and a loss of over $380 million the next year is something I cannot understand.

The mobile phone giant has posted monumental losses for four quarters in a row now, which has made its investors think twice about its future. A lot of investors are pushing Motorola to sell its mobile phone manufacturing unit, as they consider it a liability. The mobile phone biz alone, if sold, could fetch a sum of around $20 billion, according to sources.

Some big names, especially some companies from Asia, are interested in buying Motorola’s mobile phone unit. However, it’s not just about mobile phone companies. People who watch the market closely say that even a company like Google might consider Motorola a good option. Google, instead of asking other companies to incorporate its platform, can come up with its own range of Android based mobile phones if it decides to buy Motorola. However, I have to say it’s a far fetched idea, as Google may not have any such idea, at least in the near future. Google doesn’t like to identify itself as a mobile phone company, as its core revenue is based on advertising - which is the primary reason why it came up with Android, a mobile phone platform, instead of Google phone, unlike what most of us had predicted.

One thing’s for sure. Motorola is struggling. Whether it will reinvent itself with a stunning model like RAZR to reestablish its position in the market or sell its mobile phone biz to someone is something we’ll have to wait and watch.

Categories: All things mobile phones.

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