Taking the Droid out of Android: What Success will mean for Motorola

by Matt Klassen on October 29, 2010

I may be the only one in the tech world that thinks this, but Motorola’s continued growth and success with Android will inevitably mean only one thing for the US based cellphone compnay: the inevitable end of its relationship with Google’s popular mobile operating system.

Only a few short years ago mobile mainstay Motorola found itself in dire straits. In a story that had many similarities to the Palm epic—and more recently the ongoing speculation surrounding the continued viability of Research in Motion—Motorola was in the middle of slumping sales with a product line-up that was anything but mind blowing. In fact, the US-based cellphone company had yet to post a profit since 2006, that is until now.

But with the increasing success Motorola has experienced since turning much of its R&D budget towards Android, there will come a time when Motorola realizes where the real money is…designing, producing, and marketing its own mobile operating system. But what happens when you take the Droid out of Android?

I’ll just come right out and say it, in no uncertain terms Google’s Android saved Motorola. With the production of the incredibly popular Droid lineup of Android-based phones Motorola now founds itself producing several of the top 5 most popular Android phones, pulling in profits of $3 million dollars this last quarter. While that may seem like small potatoes in today’s mobile market, the same quarter last year saw the company endure an operating deficit of a whopping $183 million dollars.

The simple point is, Motorola has a lot to thank Android for, but how long will the relationship last? If Motorola has a 5 or 10 year plan that involves continued growth, especially growth enough to compete with the incumbent mobile leaders, its course seems simple: Milk Android for all its worth then invest in the development of its own mobile operating system; it’s where the money is, and if Motorola ever wants to dance with the big boys in the tech market, it will inevitably have to go there.

Now don’t get me wrong, my vision of the technological future won’t come to fruition for years to come—giving everyone plenty of time to forget about it if I’m wrong—but mark my words, success with Android will lead to companies abandoning it in the future, especially if those companies are looking to achieve increasingly high levels of success.

That being said, Motorola is a perfect example of the ever increasing popularity and adoption rate of the Android operating system, it lets middle market companies cheaply produce powerful smartphones. So for companies where the bottom line really matters, Android really is the only choice.

To further bolster the under-girding evidence for my bold prediction is the fact that Motorola will undergo a radical biopsy next year, agreeing to split its company into two and selling its mobile division to Nokia Siemens Networks for a cool $1.2 billion. Under new management, it won’t be long before Motorola will be taking the Droid out of Android.

As for my next bold prediction, here’s what’s going to happen to the world in 2012….

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Written by: Matt Klassen. www.digitcom.ca >. Follow TheTelecomBlog.com > by: RSS >, Twitter >, Identi.ca >, or Friendfeed >

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