Now that another major lay-off wave is about to hit Motorola, it’s perhaps time to contemplate how the dominant company in a major industry sometimes misreads the most important consumer trends. This typically happens when a long and well-established trend suddenly reverses. People inside companies like Motorola build their entire careers around one decade-long design goal — and when the wind shifts, the company culture is often impossible to change. The handset industry spent the years 1992-2002 in a race to cut the weight of mobile phones from about 500 grams to 80 grams. After that trend crested and reversed in 2002, miniaturization leaders like Motorola were simply never able to fully adjust. The power inside the company belonged to people who specialized in shaving off another millimeter from the phone thickness. More →
The good news for Motorola is that Google (GOOG) has plans for it other than selling it off for parts. The bad news is that these plans entail even more layoffs. The Wall Street Journal reports that Google has started laying off another 1,200 employees from its Motorola Mobility unit, or 10% of its current workforce, in an effort to slash costs and become profitable again. Google explained in an email sent to employees this week that the unit’s “costs are too high, we’re operating in markets where we’re not competitive and we’re losing money,” all of which seem like legitimate reasons to reduce staff. The latest round of layoffs at Motorola comes after Google laid off 20% of Motorola’s workforce last summer, thus bringing the total number of layoffs over the past year to 5,200.
Motorola on Thursday began rolling out an update for the DROID RAZR and DROID RAZR MAXX that brings both devices up to Android 4.1.2. Along with standard Jelly Bean features such as Google Now and Project Butter, the company has also begun to remove some of the traditional Motoblur apps and replace them with stock Android ones. In what is most certainly Google’s (GOOG) doing, the move marks the beginning of the end for Motorola’s user interface. The company has removed the Social Location app, MotoCast, MotoActv, MotoPrint, Alarm and Timer, My Gallery, My Music and Verizon Video on Demand apps from both devices. The Gallery, Music and Alarm and Timer apps have all be replaced with stock Android alternatives, while the default Web browser has been changed to Chrome.
There is no end to the humiliation the old Motorola guard is being forced to endure. Google’s (GOOG) top executives keep making disparaging comments about Motorola handsets. Many Motorola leaders have effectively been hounded out of the company via insulting contract negotiations. And now a legendary Apple (AAPL) star, Guy Kawasaki, is being brought in to teach the grandmother of the cell phone industry how to dance the Harlem Shake. Kawasaki is mostly known for his contribution in developing some of Apple’s most successful computer marketing campaigns, notably for Macintosh back in the Eighties. More →
A Google (GOOG) executive revealed that Motorola’s current line of devices don’t include anything that would “wow” consumers. Speaking at the Morgan Stanley Technology Conference on Thursday, Google’s chief financial officer Patrick Pichette said the company inherited a pipeline of unimpressive products, at least by Google’s standards. More →
How’d you like to get a new Android phone that comes with your 50 favorite mobile games already installed? Well, Motorola is trying for the next-best thing by offering a $50 Google Play store credit to customers who purchase an eligible Motorola Android phone between now and March 4th. Eligible devices include the DROID RAZR M, the DROID RAZR MAXX, the ATRIX HD and many, many more. Of course, it’s particularly easy for Motorola to offer customers a Google Play shopping spree now that it’s owned by Google (GOOG), but this does sound like a pretty sweet deal all the same. Plus, Motorola certainly wants to move a lot of its older inventory out to make way for the “X-Phone” it’s reportedly developing with its parent company, so now seems like a good time to be in the market for a low-cost Motorola smartphone.
The U.S. International Trade Commission will take a second look at the patent infringement lawsuit between Motorola and Apple. The agency, which has the power to block imports of the iPhone, plans to review Judge Thomas Pender’s findings that invalidated Motorola’s patent for a proximity sensor that prevents accidental hang-ups. The judge ruled in December that Motorola’s patent wasn’t substantially different from a previous invention that prevented accidental dialing, but the company argued that the earlier invention concerned physical keys and not touchscreens. The invalidation cleared Apple (AAPL) of Motorola’s infringement claims. The Commission’s six-member panel will review the initial ruling and make a final decision on April 22nd.
The cameras on Google’s (GOOG) line of Nexus smartphones have consistently performed worse than the competition. Some have said the default Android image processing software is at fault, while others have suggested low-end sensors are to blame. Google’s smartphones, nevertheless, cannot compete with Apple’s (AAPL) iPhone, HTC’s (2498) DROID DNA or Samsung’s (005930) Galaxy S III when it comes to photo quality. Things may be about to change, however. More →
Google (GOOG) is expected to unveil a new smartphone later this year that will be manufactured by Motorola. The device, which is known as the “X Phone” for the time being, is said to feature a high-end rear camera, long battery life and a flexible display, and it is expected to be very durable. Hugh Bradlow, the chief technology officer of Australian wireless provider Telstra, reportedly told employees that the smartphone is going to be a “real breakthrough, a game changer that will put pressure on Samsung and Apple,” according to SmartHouse. Sources speaking to the site also revealed that the handset may include software that has never been seen before in a smartphone. More →
It looks like Google (GOOG) and Motorola are working on something special after all. Phandroid has spotted a job posting on Motorola’s LinkedIn page that’s looking for a senior director of product management for the long-rumored “X-Phone” being jointly developed by Google and its Motorola Mobility division. Rumors about the X Phone started springing up toward the end of last year and all indications are that Google plans to release the phone by the end of this year. Google’s plan to build a phone with a company it owns has sparked speculation that the company may be looking to take more control of its Android operating system and to lessen Samsung’s (005930) power over the Android ecosystem.
Google (GOOG) is believed to be working on a new flagship smartphone and a flagship tablet in its Motorola division. Unlike its Nexus line of devices built by various Android partners, the rumored “X Phone” and “X Tablet” will mark the first time Google controls everything from the device’s hardware to its software. Rumored specs are said to include a top-notch camera and photo software, a bendable display and a high-end ceramic case. Now, Google CEO Larry Page has incited a new round of speculation on Tuesday with comments he made during the company’s fourth quarter earnings call. More →
Two years ago, comScore pegged Motorola’s share of United States smartphome subscribers as 17%, down 1.8 percentage points in three months. That slide has pretty much continued ever since and yesterday’s survey found Motorola’s share dropping another 0.8 percentage points to 10.4%. It may seem that LG (066570) has suffered a wipe-out in the U.S. market over the past years, but LG’s share has actually slid just 3.4 points since November 2010. Motorola’s share has crashed by 6.6 points. More →
