Motorola considers selling off cellphone arm; Ericsson cautious

Posted on 01 February 2008 by Chris Davies




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In a stunning display of marketing-speak, Motorola have announced that they are “exploring the structural and strategic realignment of its businesses to better equip its Mobile Devices business to recapture global market leadership and to enhance shareholder value”; in other words, they’re thinking of selling bits off.  In a bid to reverse the decline of their cellphone branch, Motorola are apparently considering separating it from the rest of the company.

Motorola Z10

Executives at rival Ericsson, however, are cautious about expressing any interest in potentially buying up whatever assets Motorola looked to be rid of:

“As professional business leaders we look at everything, but we would take a very cautious view on such a thing because we do believe you are better off doing it on your own … We are probably the company of all our competitors that has acquired the least because we do base our strategy on our own internal work — R&D and organic growth” Carl-Henric Svanberg, Chief Executive, Ericsson.

Ericsson announced their own performance figures earlier, with an 18-percent increase in handset sales from Q4 2006 to Q4 2007.



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