Continuing Doubts About Motorola’s Turnaround

Poor Motorola. During an Oct. 30 conference call discussing the third-quarter results that included falling sales and a wider loss, Motorola’s new co-CEO Sanjay Jha outlined plans to reduce costs, streamline the way the company makes products, and delay a spin-off of the handset business.

But investors understandably aren’t that impressed. As I’ve said before, spinning off Motorola’s handset division will not help solve their problems–and it may even exacerbate them. Now, the company seems to be waking up to that fact.

My colleagues Olga Kharif and Roger Crockett wrote a story today focusing on Motorola’s continuing–and worsening–problems. 

“Motorola’s market share is likely to keep falling in the coming year, say analysts including Matt Thornton of Avian Securities and Ken Hyers of Technology Business Research. Thornton says the company’s share could dip to as low as 6% next year.”

Bottom line: Until Motorola rolls out some innovative new products that connect with consumers like Apple and Research In Motion have done, the company is destined for a long and slow decline.

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One Response to “Continuing Doubts About Motorola’s Turnaround”

  1. adam Hartung Says:

    This will not turn around Motorola. Executives are not prescient, and companies need market input to migrate successfully. Cutting new products and technologies is not going to provide the elements needed to success – good scenario planning, obsessive competitor understanding, willingness to be disruptive and using White Space to understand market needs. Motorola’s new plan misses most of the requirements. Read more at http://www.ThePhoenixPrinciple.com

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