Motorola today announced that it had commenced a process to split itself into two seperate companies: a mobile device business and a broadband and mobility solutions business (reflecting current divisions within the company). The move seems likely to avoid a direct sale of the mobile device business, but a joint venture with another company remains a distinct possibility.
Read on in the full article.
Interesting news in light of the upcoming job losses at their Birmingham site.
a joint venture with another company remains a distinct possibility.
We're right back to that conversation we had a while back!
Who on earth could they partner with though? Perhaps someone new to the mobile phone business who needs an experienced player to work with?
I'll say this because it's an intriguing though unlikely possibility: Apple and Moto.
Sure, Apple's had a lot of good press with the iPhone especially in the US, but it's still just a high-end low-selling model and extremely unlikely to get them much market share. Moto on the other hand has sold low-end and mid-range stuff for donkeys years and was until recently the second-largest phone maker.
So who's spinning off who? Is it the network business parting with the mobiles or vice versa?
The way I see it - everybody is spinning off the telecom, to increase the innovation rate in the mobile business which becomes (or should become) competitive to the Internet companies. Within the telecom companies, the Packet Core (not voice) becomes the prime revenue source, along with the Value Added Services.
The 'spun off' telecom gets to merge...as they say, to 'become a bigger/tougher competitor in the market', but in fact just to keep the shares up after such operation.
Anybody connect?