Comments on article found at: http://www.internetnews.com/mobility/article.php/3762496/Surprise-Motorola-Turnaround-Yields-Small-Profit.htm
Three years ago many stock brokers and analysts had given up on Motorola; with many saying the company needed to be sold off. Well, it looks like they were wrong. Motorola appears to have turned itself around. I have been rooting for this company for some time.
There is still work to do in Motorola but it is clear that the company is on a road to recovery. The company has not completed its turnaround but compared to two and three years ago, Motorola looks healthy.
Competition in the marketplace is stiff. Motorola needs to stay on course. Motorola needs to be aggressive about its 4G handset work. Of course, its WiMax investment may be in jeopardy if Sprint Nextel surprises everyone and ultimately decides to shift gears and promote LTE. Right now, the recession has proven to be Motorola’s greatest ally.
As I have said over the last three years, the recession has leveled the playing field.
Motorola is now partnering with Ericsson on a broadband technology effort for the public safety sector. This particular Ericsson effort is a sign of the times. Motorola needs to reach outside and join forces with other vendors in order for it to generate revenue.
Motorola’s overall restructuring and turnaround appears to have taken hold.
The company is not out of the woods yet. The company’s enormous progress in the handset sector has saved it. However, the handset sector is a dynamic one; so dynamic that in a year the fortunes of a handset vendor rests on each model it sells.
Motorola had announced months ago that much of its cash reserves would be dedicated to its handset business.
The company’s network business will live and down on partnerships. This division will need to continue leveraging vendor-to-vendor relationships if it expects this group to survive when the handset division spins itself off.