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story category Analyst Predicts Continued Decline of Motorola Handset Sales
Too many new smartphone competitors, too little from Motorola
09:34AM Friday Jun 20 2008 by KathrynV
tags: competition · business · wireless · hardware · trouble
Motorola has been struggling with dismal handset sales to the point where they have terminated 10,000 employees in the past year-and-a-half. Analysts predict that the situation is only likely to get worse for Motorola in the second half of this year due in large part to amped up competition in the handset market.
"The recent leaks of Motorola’s summer and fall model launches combined with the new announcements from HTC, Samsung and LG lead us to believe that Motorola is going to under-perform the already dismally low expectations for the second half of 2008."
Competitors are working hard to beat each other out in the area of affordable advanced smartphones (like Sprint’s Instinct) and Motorola just doesn’t appear to have anything that can compete which is causing carriers to scale back their already-wary support of the brand.

Related:
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  3. Nortel Joins Qualcomm in Opposition to LTE Patent Pool
  4. Android May Launch Application Store to Compete with iPhone
  5. Blackberry Twice as Popular as iPhone
  6. 4G Technologies Should Merge, Not Compete, Says Intel
  7. Qualcomm Fined For Violating Chips Injunction
  8. iPhone Heading To Verizon
Forums » Analyst Predicts Continued Decline of Motorola Handset Sales
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MPScan
Premium
join:2001-08-24
Boston, MA

Survival of the fittest...

Too bad, because they really had something with the Razr. I guess they just sat back and thought that their one good product, the Razr, would carry them forever.

Similar to how GM/Ford viewed themselves when they were on top of the world with the SUV.

sMoKeNiNja

join:2001-09-10
Wheaton, IL
clubs:

Re: Survival of the fittest...

Its true. It seemed like they stopped making phones after the Razr had such success. At least the phones they did make were garbage.

they still have their radio division, which can keep them afloat for a while I hope

MattE
Obama '08
Premium
join:2003-07-20
Jamestown, NC
·North State Commun..
·Corporate Colocation

said by MPScan See Profile :

Too bad, because they really had something with the Razr. I guess they just sat back and thought that their one good product, the Razr, would carry them forever.

Similar to how GM/Ford viewed themselves when they were on top of the world with the SUV.
Yep. I bought a Razr2 because I wanted something a little more up-to-date than a Razr but still small and thin.

It's way overpriced for what it is, a small, not even light, (it's heavier than my Moto Q9c!) phone.

Now, the Moto Q9c is a great little smartphone.

Jim Gurd
Premium
join:2000-07-08
Plymouth, MI
·Comcast

Re: Survival of the fittest...

said by MattE See Profile :

Yep. I bought a Razr2 because I wanted something a little more up-to-date than a Razr but still small and thin.
I have the V3xx and love it. It's a major update to the standard RAZR. Motorola phones are known for exceptional reception. I virtually never drop calls, even in fringe areas.

They are also very easy to mod which is another reason to love them.

Does anyone know the differences between the V3xx and the RAZR2? I use AT&T as my provider.
--
Calling an illegal alien an undocumented worker is like calling a crack dealer an unlicensed pharmacist.
ender7074

join:2006-11-21
Saint Louis, MO
Yah I got the Razr 2 as well and I'm not very happy with it. The battery life is a joke and my keyboard is going out. Piece of junk.

MattE
Obama '08
Premium
join:2003-07-20
Jamestown, NC
·North State Commun..
·Corporate Colocation

Re: Survival of the fittest...

said by ender7074 See Profile :

Yah I got the Razr 2 as well and I'm not very happy with it. The battery life is a joke and my keyboard is going out. Piece of junk.
I already had to swap it because my keyboard went out. The Verizon guy knew what was wrong as soon as he opened the phone. I didn't even have a chance to tell him. Must happen often.

supergirl

join:2007-03-20
Pensacola, FL
·Skype
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·magicjack.com

said by MPScan See Profile :

Too bad, because they really had something with the Razr. I guess they just sat back and thought that their one good product, the Razr, would carry them forever.

Similar to how GM/Ford viewed themselves when they were on top of the world with the SUV.
The RAZR was the most touchy POS I ever owned. I dropped it once. Broken. My other cellphones have been run over by cars, dropped into the ocean, thrown against a brick wall....well, you get the idea. The RAZR would have been nice if it had some padding. I did drop my Samsung down a flight of stairs and it still works fine.

Motorola's problem is their quality. I may hate Nokia but really hate Motorola after 6 RAZRs. I'm used to just throwing my cell in my purse. If it can't handle my purse, which even has padding and compartments, it is a POS. I hate Nokia because they are too small and their speakers suck.

And, can't Motorola offer some different colors?
--
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pjhofmann

join:2000-08-22
Happy Valley, OR


edit:
July 4th, @11:17AM

It's very sad from my point of view to see this happen. I worked at Moto for 8+ years in the cellular infrastructure division during the hayday of CDMA. We were not always on top in that division but were top dog in the mid to late 90's in the handset division. I remember hearing about how they routinely got 20% bonuses each year, you'd know it when you would see tons of brand new cars pop up overnight in the parking lot . Good luck to them, I have very fond memories of my time there.
tmc8080

join:2004-04-24
Floral Park, NY

exiting handset business

Motorola makes it clear that they plan to exit the handset business soon. Why worry about competing when 5 other handset makers already do a reasonable job at making handsets. Motorola will have to take a pay cut along with their wireless sponsor: Sprint.. that laughable company which is losing customers in droves.

HTC
LG
Sony/Ericson
Samsung
Qualcomm (generally a chipset maker, but they have been known to go all the way and make a phone or two)
Nokia

And let's not forget smart & hybrid makers coming into the market such as Apple. Possibly others such as HP, Dell and others will enter handset market with smart phones that do wifi / voip as an added bonus.
kg4icg

join:2003-11-16
Ashburn, VA

Re: exiting handset business

Qualcomm is more then just a chip maker. They are also a communications company. Proof in the pudding, Qualcomm Satellite communications systems in most every Commercial tractor trailer going down the road. They started that before making chips for cellphones.
Kearnstd
Elf Wizard

join:2002-01-22
Mullica Hill, NJ
moto is probally making more money from their broadband equipment business.
--
[65 Arcanist]Filan(High Elf) Zone: Broadband Reports
EPS

join:2008-02-13
Hingham, MA

Re: exiting handset business

Considering their cell-phone division is losing money, it's probably true...

This is why Motorola is splitting itself (again)... I wonder which side will get the logo? (Which is perhaps one of the best logos out there, up there with the Apple and GE logos I'd say)

Motorola blows it again- just like with processors, they can't keep a good thing going.

HEDP

join:2008-04-27
Miami, FL
You forgot Kyocera which now owns Sanyo wireless.

GlobalMind
Domino Dude, POWER Systems Guy
Premium
join:2001-10-29
Hollywood, FL

And RIM gets the benefits

Here in SFL, RIM picked up a few Moto engineers that were laid off.
Mr Matt

join:2008-01-29
Eustis, FL
·Comcast

Motorola comes and goes.

Motorola entered the 47/49Mhz cordless phone business in the late 80's. Suddenly Motorola cordless phones disappeared from the market. Around 2001 Motorola began offering 2.4Ghz cordless phones and not long there after 5.8Ghz cordless phones. It appears that over the last Six Months they have gotten out of the cordless phone business again. I wonder what one does if one wants to purchase an expansion handset for their Motorola cordless phone system. Another Motorola disappearing act.

fcisler
Premium
join:2004-06-14
Riverhead, NY

garbage

I don't know, every single motorola phone that I have seen/used is a POS.

Nextel phones? garbage. Leaps and bounds BEHIND current standards, and extravagantly expensive! Razr? Cmon...it's a thin phone, but that's all it has going for it. They have an average 8 month lifespan, at least from my 4 Razr's and most of my friends. They get horrible static and the keypads get destroyed.

When nextel was the thing to have, motorola could get away with charging $500 for a garbage phone. Now that nextel is absolute garbage, motorola needs to reinvent itself.

At least a company like nokia has been around forever and is constantly reinventing itself. There's an article on slashdot about how nokia hired an anthropologist to study how people use their cell phones. What does motorola do? Hire a monkey to figure out how to make a POS nextel even worse?

I'm quite fond of samsung and my blackjack II, with a real GPS.

aaronwt
Premium
join:2004-11-07
Woodbridge, VA

Motorola handsets are the worst. with their archaic menus

They have the worst menu. My first cellphone from 1994 had a better menu than the current Motorola phones have. We use them at work and I can't stand using them with their archaic menu. I would never buy one for personal use.
GDATL
Premium
join:2002-02-08
Atlanta, GA
·AT&T Southeast

Q9h is best phone I'e ever had...

I generally don't like Motorola phones and after trying several other Windows Mobile phones, I tried the Q9h. To my surprise it has been the best phone I've ever had. Best sound quality and best RF transceiver - gets thru where other people don't have a signal! But I guess quality doesn't matter to most people, I guess. Sexy sells more than quality does in today's market. (Doesn't matter whether it is phones, cars or political candidates!)
--
GDATL - Atlanta GA
gkveton

join:2001-07-11
Grayslake, IL

Re: Q9h is best phone I'e ever had...

said by GDATL See Profile :

...I tried the Q9h. To my surprise it has been the best phone I've ever had. Best sound quality and best RF transceiver - gets thru where other people don't have a signal!
I have a Q9c and also think it's a great smart phone. The speakerphone has great clarity. I can use it in the car and not mess around with a headset. It holds calls well and has sound quality similar to a landline phone. I like it better than my Treo which I thought was a great phone too. It's too bad that Moto is losing money. I would definitely get another one when my contract is up if they are still making cell phones.

mod_wastrel

join:2008-03-28

I just want my old StarTAC back...

great voice quality, long battery life, nearly indestructible... all I need from a PHONE.

bigunk
Gort, Klattu Birada Nikto

join:2001-02-10
Santa Clarita, CA

Re: I just want my old StarTAC back...

My first phone was a truck-mounted MiniTAC 3000. Solid as a rock. Just threw it away a couple of months ago...
jester121

join:2003-08-09
Lake Zurich, IL
·ViaTalk

said by mod_wastrel See Profile :

great voice quality, long battery life, nearly indestructible... all I need from a PHONE.
That was a hell of a phone.

moozoo

@eminc.com

Re: I just want my old StarTAC back...

Yes you can use for replace dump bell to build you bicep

mod_wastrel

join:2008-03-28

Re: I just want my old StarTAC back...

A StarTAC weighs less than almost every "smart" phone being sold today, and that's with the extra capacity battery. You must be thinking of another phone.
Shoreline
Your Freedom Fries Are Stale

join:2003-09-29
Santa Clara, CA

Nothing but good experiences..

.. with Motorola phones.

Pretty sad that my provider has only offered the most expensive, fad-like phones from Motorola anymore.

Their mid-range phones I've had over the last 3-5 years like the V180 and SLVR L7 are very good, and my family have literally ate through most other variety of phones, especially Kyocera and Audiovox/UTStarcom every 6 months or so. The three Motorola phones I had lasted me an average of 1.5 - 2 years each.

Personally, if something is working, I stick to it. On the other hand, I won't buy the most expensive Motorola phone mostly because it has features I don't want or want to pay for.
--
Moore/Alexander 2008

Conservatives love religious-like aphorisms so here's one: "Freedom isn't free. It's Made in China."

spamd
Premium
join:2001-04-22
Rockford, IL
·Insight Communicat..

I really miss my DynaTAC.

Click for full size
great voice quality, long battery life, nearly indestructible... all I need from a PHONE.

LOL! My Blackberry Curve can't compete.

--
--
When everything is coming your way, you are in the wrong lane.
Superfly3

join:2007-06-06
Caro, MI

Re: I really miss my DynaTAC.

That was a bit rude I would say.
jester121

join:2003-08-09
Lake Zurich, IL

*sigh*

Motorola is the Covad of hardware.

All the potential in the world, and still finding exciting new ways to SUCK.

HEDP

join:2008-04-27
Miami, FL

Re: *sigh*

I like the way you put it, in overall I think Motorola will eventually either kill their cellphone division or simply do a whole redesign of their current portfolio.

The biggest problem with Motorola is the overall interface the phones have. The Motorola RAZR although had a huge success it was mostly because of it's super thin size at the time, not because it was a rock solid phone and eventually everyone wanted one.

You can think of it as some iPhone hype, you don't really plan on using the phone, other than to place voice calls. But you just *had* to have one. The RAZR had terrible reception on any network because of it's internal antenna form factor and although that has improved through revisions of the product, the interface hit the fan.

It's not just about slim anymore, it's who can deliver video audio, and everything in between with the most battery life at the lowest cost possible.
nutcr0cker

join:2003-04-02
Chandler, AZ

Just when I was about to believe in our president McCain

Just when I was about to believe in our next president McCain...that Americans are lazy and donot need work or are not just enemployed but unemployable...Seems like the Motorola ramping UP R&D in India is not helping much...oh well vote McCain 2008
ke4pym

join:2004-07-24
Charlotte, NC
·RoadRunner Cable
·Verizon BroadbandA..
·Packet8
·Vonage

V9m

I've had a V9m for about 3 months now. It replaced my old V3m that I had for 2 years.

Neither of them have given me any problems. I would have kept the V3m but I really liked the bigger buttons on the V9m. I've got fat fingers and the tiny phone buttons suck.

I don't care about bluetooth, or MP3 playback or the camera. But I liked the buttons. So it was sold.

I got the extended battery for it and when the cell site at work is working correctly I can get about 2 weeks out of a charge. I use about 45 minutes a month on the thing.

If you're on the VZN network, dial *228 and option 2. This will help battery life quite a bit by updating the roaming profile.

eyephone

@netvigator.com

sell

sell this POS division already
Forums » Analyst Predicts Continued Decline of Motorola Handset Sales


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