Well the word is out, like it or not but Motorola may be looking at pulling out of the mobile phone sector. In its statement, the company declared that it was “exploring the structural and strategic realignment of its business” and it may be looking at “the separation of mobile devices from its other businesses”.
The company’s sales were observed to plummet in the 4th quarter by 38% and company profits were down a staggering 84% from $523 million to $111 million.
The spiral downward was set into action last November when we saw CEO Ed Zander giving up and the company never recovered. Worst news yet, it has been predicted that Moto may also be headed towards the same unfortunate fate.
Revealing as this may be, it’s not the first time Motorola has bowed out of its existing core businesses. Remember the time when Motorola was everywhere as radios and televisions.
However the question now is whether anyone out there is willing to pick up the pieces and push the company into stability rather than have it depend on a short term glory it seemed to bask on due to the RAZR. Also what cushion the company lands on is still to be decided as its major share-holder Carl Ichan is still pushing for a split.
Can the company survive all of this? Will reconstructing soothe the damages? Whatever it may be all we can say for now is Motorola, May the force be with you!