Motorola Prepares New Business Plan

By Michael Todd
16:42, October 29th 2008
79 votes
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Motorola Prepares New Business Plan

There have been several reports and articles about Motorola’s plans for the future. The Wall Street Journal announced that the company’s co-chief executive Sanjay Jha plans to let go many of its employees, in an effort to boost production by simplifying the entire device-making process.

More details about the strategy are expected tomorrow but so far the company refused to address these rumors.

The paper notes that Motorola decided to focus its efforts on Google’s android software which will be used on many of its releases. The mid-tier devices, which form the company’s bestselling division, will also use the new operating system, while the business-focused devices will use Microsoft Corp’s Windows Mobile. Its own P2K OS will only be used for the cheapest mobile division. There are also four other cell-phone software platforms used by Motorola, which will be put aside as the company will focus all the attention on less products in order to make the best of them.

Earlier this month, Motorola brought together more than 300 developers in order to prepare the best possible features of the company’s new devices. Once the G2 will roll out, many other phones are expected to follow.

The competition is tougher than ever, with Apple, RIM and Nokia going strong to secure their market positions and also winning new ground with their sales. One of the problems is that the company did not prepare any attraction for this upcoming holiday season, which will surely represent a great boost for everyone else’s annual fourth quarter. What should be considered a good sign is T-Mobile’s massive success with its G1 device, the first to poses Google’s Android OS. The smartphone’s maker, HTC, recorded sales that went through the roof, exceeding by far the most optimistic expectations.  

The G2 phone, as it is called, is scheduled for release sometime in 2009, and Motorola hopes that the device will bring the company back to profitability after intense struggles and significant financial loses. Motorola’s social-networking smartphone is expected to feature a touchscreen similar to Apple's popular iPhone, and also a slide-out QWERTY keyboard that will allow users to easily connect to social-networking sites such as MySpace and Facebook. For now there are no details about its design and how similar it will be to T-Mobile USA and HTC's G1 phone, but more will surely be revealed over the next few months.

Tomorrow, the company is expected to report its earnings and also details about the layoff plan. Over the last year and a half, Motorola let go more than 10,000 employees and still, the wanted formula has not yet been found.   

The Wall Street Journal also reported that Mr. Jha talked to Motorola’s employees and explained that his wife refused to use a Motorola phone because she did not want to use a manual to learn its functions, which made him figure out that the company has several basic problems ranging from late deliveries to user interfaces.



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