Amid Loss, Android Won’t Solve Motorola’s Problems
Analysts aren’t getting good vibes about Motorola’s future in Android-powered smartphones. Just weeks after Motorola slashed 4,000 jobs, and months after it scaled back its software and mobile-device businesses, it still has a rough road ahead.
The mobile-phone maker is expected to offer a new Android-based smartphone with an iPhone-like touchscreen, a QWERTY keyboard, and focused on social networking. The phone is expected to reach the market in the second quarter.
But analysts fear that Motorola, which saw its profit plunge in 2008, will have a firm fight on its hands against competitors who are additionally embracing the Android market.
T-Mobile, Google and handset maker HTC have introduced the G1 Android-powered phone, which is similar to Apple’s iPhone, has a three-megapixel camera, and a slide-out QWERTY keyboard. thereupon there’s Nokia, the leader in the smartphone market, Palm with its Palm Pre smartphone expected to reach the market that year, and BlackBerry maker Research in Motion.
“There is always a chance, but Android is not a panacea for all of Motorola’s problems, and that will be a challenge,” said Michael Gartenberg, a technology analyst. “The challenge that they face is when you adopt something that is a commodity platform — it’s something everyone can use.”
A Fourth-Quarter Loss
Motorola will have to find strong ways to differentiate itself from others both on the hardware and design side as well as the software side, according to Gartenberg. whether Motorola does what it has done historically with its innovation behind the RAZR, MPx and Q devices, it stands more of a chance.
The skepticism on Motorola is based on the company’s history of making basic mobile phones and weakness in the software arena. The skepticism is so great that it has driven Motorola’s shares down 60 percent in the past year.
“I think Motorola has software skills as…
[Source] dhiram