Is Motorola exiting the mobile phone business?

Well, maybe.

Nomura International analyst, Richard Windsor, issued a note to clients that Motorola (NYSE: MOT) could be considering dumping their mobile phone business to concentrate on evolving into an “enterprise and government company.” Windsor also speculated that Chinese investors might buy-out the troubled handset manufacturing once-giant. However, this end-game is “unlikely as those [Chinese] vendors don’t have much of an idea how to fix Motorola’s problems.”

Is Motorola really in that much trouble that they’re seriously thinking about folding-up their handset division and redirecting resources to the enterprise and government business that got them started all those years ago? If the recent downturn in Motorola’s stock and finances are any indicator, they very well could be in a heap of trouble. It would be a shame if the company that revolutionized mobile phone design with the RAZR didn’t see it through to the next decade.

Of course, this is all speculation. Motorola might do well to trim down its handset business and refocus on improving the user experience. As they stand, Motorola has a huge lineup of mobile phones, and most of them suck from a UI perspective.

Hey Moto, refocus your resources on making phones that are more intuitive rather than spending them on producing a huge range of products. You know what they say - “when the going gets tough, the tough concentrate on making more intuitive handset.” At least that’s how we think it goes.

[Via: MarketWatch]