Richard Windsor, an analyst for Nomura International, told his clients that instead of handsets, Moto may choose to refocus on becoming an “enterprise and government company”. He further speculated that a Chinese company might purchase Moto, before backtracking calling it “unlikely as those vendors don’t have much of an idea how to fix Motorola’s problems.”
While it’s clear that Motorola has hit a rough patch with their mobile phone sales slumping, new CEO Greg Brown reiterated the companies focus on recovery when he spoke with investors earlier this month. “The recovery in Mobile Devices will take longer than expected and there is a lot more work to be done,” said Brown.
While certainly newsworthy, there doesn’t appear to be any validity or evidence supporting Windsor’s claims. The mere fact that analysts are mentioning this scenario does reinforce that Motorola needs to innovate in light of increased competition in the mobile sector.