Motorola will also produce fewer handsets from now on, but is that such a bad thing? It could actually work in its favour.
No fewer than 4,000 Motorola employees will lose their jobs, a third of them in the US. A third of Motorola Mobility’s 94 offices will close, too. So what is Google planning for the company? It’ll unveil a wireless strategy revamp that’ll involve getting out of unprofitable markets, as well as cutting down on the number of handsets it pumps out.
Google bought Motorola last year. It was after its vast patent library to defend Android against attacks by Apple.
But could fewer phones be a wise move? Companies like HTC have flooded the market with super-phone after super-phone, while the likes of Apple and Samsung have focussed their energies on one flagship, to greater success. (Admittedly Samsung does offer a huge range of low-cost handsets for the teen market too.) Sales of the HTC One X have been disappointing, yet HTC is already readying its sequel, known as the HTC Endeavour C2. And it’s even more super-powered. Throw a lot of phones at a wall, and some of them have to stick, I suppose.
The job cuts are a real blow, but if Google can focus Moto’s considerable talents and vast patent database into more phones like the Razr and Razr Maxx, and fewer me-too handsets, the former great could be on the rise again.