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Motorola To Exit Handset Business?

By Dianne See Morrison - Tue 29 Jan 2008 09:15 AM PST

Nomura International analyst Richard Windsor has caused quite a stir with a research note published to the bank’s clients today saying that beleaguered cellphone maker Motorola (NYSE: MOT) may exit the handset business all together and concentrate instead on becoming an enterprise and government company. Marketwatch reports that the note also dismissed the rumors that Chinese vendors may buy Motorola, which has slid to an ignoble third place in market share after Korean rival Samsung snatched away its number two slot. Windsor noted that such a deal is unlikely, because the Chinese handset makers don’t know how to fix Moto’s problems either--which he says is more a problem with its plaftform and software, rather than its hardware. In an earlier note last week, Windsor noted that “Nokia (NYSE: NOK) has evolved into a new beast...Rivals have been contemptuously swept to one side, leaving Nokia as the undisputed king of the the jungle.” He added, Nokia, which just saw its marketshare break 40 percent, “is now so far ahead of its competitors that there is very little that they can do to catch up in the short-to-medium term.” With Motorola in meltdown only Samsung and Sony (NYSE: SNE) Ericsson (NSDQ: ERIC) would offer the Finnish giant any challenges this year. 

Posted in: Companies, Motorola, Nokia, Samsung, Sony Ericsson

Tags: nomura international

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