Motorola is selling off their networks division
July 31st, 2010It’s been quite some time since rumours were doing the rounds regarding Motorola splitting their empire into two halves. Now the news has been confirmed. Motorola is indeed dividing their company into two segments within the first quarter of next year. Many of you who have been a keen watcher of the cell phone industry and how it has shaped must be remembering that model RAZ which had been a ‘must have’ for many-a-tech fan. But Motorola has failed to revive their past glory days.
The first segment, one which handles the manufacturing of the equipments that make the operators, the networks segment is rumoured to be sold off to the Nokia Siemens Networks at a moderate costing of $1.2 billion. Wall street journal is set on announcing the final outcome of the company within these few days.
One also hears that there has been a Chinese infrastructure company, Huawei that has liquidated funds and cut down prices drastically so as to buy off Motorola’s networks division. But if sources are correct, it seems that the American government wasn’t too keen on doing such a ‘rash’ business and turned it down saying that they weren’t too comfortable with the sale. It’s not only that the Americans who seem to be flinching at the Chinese vendors, but recently even the Indian government condemned the buying of equipment from the Chinese vendors on account of the poor quality.
Motorola has been doing meek business these days in comparison to their earlier profit margins. They had launched the android models recently which were to an extent a success, given the fact that they were competing against the Apple’s Unlocked iPhone 4 launch. But it seems that Motorola needs to pull out more tricks from up its sleeve if it thinks of staying in the completion against the Nokia network.
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