Motorola Postpones Mobile Spin-Off
Motorola decided that the spin-off of its mobile device unit should pe placed on hold for the time being. And that was just the beginning of the bad news.
October 31, 2008
The company failed to achieve its goals in the third quarter and nearly all the results it announced were less than it was expected. The one outstanding exception was in the losses department, where the figures were indeed higher than hoped.
The company reported having sold 25.4 million cell phones in the quarter, down from a previous 28.1 million in Q2. The mobile division unit thus only managed to produce losses: $840 million, out of a revenue of $3.1 billion.
Motorola has been tring for some time to get rid of its division, either by selling it to another competitor or turn it profitable again via a lengthy process of downsizing. Still, it seems that Motorola has little luck currently:
"While our strategic intent to separate the company remains intact, we are no longer targeting the third quarter of 2009, primarily due to the macro-economic environment, stresses in the financial markets and the changes underway in Mobile Devices," said Sanjay Jha, CEO of Mobile Devices
One solution to get Motorola’s mobile unit of of trouble was to embrace Google’s Android OS as soon as possible. However, the plan has been delayed as well, with the company admiting that it won't deliver an Android handset to the market until next year.