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Motorola Closing Chinese Plant, Downward Spiral Continues

By: , IntoMobile
Friday, March 6th, 2009 at 7:36 AM

Sad MotoWhen Motorola’s shutting down a plant in China, the very mecca of handset manufacturing, you know things are headed downhill. Motorola’s CEO has a big incentive to pull himself up by the socks and fix the situation, and perhaps mitigating manufacturing costs will be one way to do it.

The cell phone sector will be integrated into production lines in Tianjin Motorola after the first quarter of this year,” said Chen Lei, spokesperson, Motorola China, adding that “Hangzhou Motorola will instead focus on TV set-top-box business as well as broadband and mobile network equipment.”

“The integration of the cell phone production also helps Motorola to lower its costs as the handset industry is better off in Tianjin than Hangzhou,” said Zhang Ying, vice-president, Analysys International, a leading advisor for technology, media and telecom industries in China.

Downsizing is bound to happen in this economy, but it seems like changing manufacturing plants is just a way to stem spending rather than really get them out of the rut. What Moto really needs is an awesome Android handset; the ZN300, i465, and a couple generic sliders are not going to save them.

[via Cellular-News]

About The Author

Simon Sage

Simon Sage’s education largely surrounded writing, technology and online community, leading him to begin his blogging career at www.BlackBerryCool.com and to quickly discover a vibrant and active community surrounding BlackBerry and mobile technology. In exploring RIM’s platform, he has learned what enterprises are looking for in mobility as well as what makes the innocuous BlackBerry so appealing to them. Recently Simon’s been covering RIM’s gradual move into an already-crowded consumer market, and the impact of burgeoning challengers, such as the iPhone, as well as long-time leaders, like Nokia, on BlackBerry’s advancement. With plenty of content under his belt, Simon will be branching off a bit to see what other smartphone manufacturers are working on while still using BlackBerry as a barometer. At IntoMobile, you can count on his posts being even-handed, well-informed and thought-out.