Motorola views the crisis from within, by its President

8:07 AM Edited by Blony

Greg Brown, Motorola president and co-CEO alongside Sanjay Jha, is a very critical view of his own company and sets out one by one the reasons why it has lost the leadership it did not take up long ago.

Brown said that Motorola was not fast enough to see how mobile devices are evolving from simple phone calls to sophisticated equipment to surf the Internet and send email. He also mentioned that Motorola did not see the trends in 3G smartphones, which took the market.

Another possible points of the decline and lack of strategy was the commitment and allocation of resources to develop an operating system based on Linux and Java and miss other trends that were developing in the market, even using the old Windows Mobile. While its rivals are striving for simplicity, Mr Brown said that Motorola has been swimming against the current by use of several operating systems and chipsets providers at the same time.

Part of the deterioration of the strategy and finance, Motorola, was the decision not to abandon his tactic of selling time teams of less than $ 50 in developing countries, which led him to be number one until 2006, but then the trend changed, and Motorola failed to get out of it.

The market share of Motorola mobile phones has fallen from 23.3% in the fourth quarter of 2006 to the current 6.5% at the end of 2008, and in constant decline, 8.3% throughout 2008. This meant a loss also assume 2.2 billion dollars, something unheard of for this giant.

Denies a possible spin-off, although it would be somewhat consistent, and drops to a level close to unity. Expected that the strategy is being designed with Jha fruit during 2009, making Motorola a niche player in the mobile terminals. Aim at this new stage, teams value and smartphone segment.

The note by the FT also said that Motorola bet heavily using Google's operating system, Android, for many of its new handsets from the fourth quarter of this year.

Know that your president has the vision, good news from Motorola, we'll have the strategies are for 2009 and 2010, years during which we hope to recapture the glory of having learned.