Good bye Moto?

“CHICAGO — Motorola is banking on a plan to separate its foundering cell phone unit from the rest of the company…” ( By ASHLEY M. HEHER Associated Press 3/27/2008)

In case you haven’t heard, if you own a Motorola phone, there will be some changes to the company that manufactures it. I am not a market analyst or even someone who follows the stock-market more than the occasional check-in with “Mad Money” hosted by Jim Cramer. So, I was very shocked to hear that Motorola is selling the cell-phone division of the company. After some poking around the net I found other stories ranking Motorola’s sales as poor, yet almost all the articles stated what the Wall-Street Journal LiveMint.com said:
“ Motorola ranks third in the world market after Nokia and Samsung, with a 12.3% market share, according to Strategy Analytics, a research company. “
(http://www.livemint.com/2008/02/13232709/Nokia-consolidates–its-lead.html Posted: Wed, Feb 13 2008. 11:52 PM IST )

I don’t know what this will mean for people like me who have owned a Motorola phone for over two years and cannot afford a new phone or a new contract. I would hope that ranking third in the world market share would be enough to sustain a business. If a company can only be profitable in the number one or two spots, what hope is there for competition?

I also uncovered that much of the woes of the phone sales are do to the units not moving in China as well as they used to. As a “free-market” promoter, I have mixed emotions about this news. I want trade and capitalism to move as freely as possible. However, I am not sure that is always happening.

My main concern is a lack of communication to the consumer, like myself. I don’t want to have to buy a new phone because another country doesn’t like the company I purchased from. If Motorola goes under and stops servacing their phones, my next cell phone purchase will have to include a review of the health of the company as well. I don’t think I’m ok with that.

What next, I have to sell my Ford before I pay it off because the rest of the world hates the type of car that is cheap to own here? I know this is generalizing, but I want to get my full frustration across. When did it become a bad thing to only be the world’s third largest anything?

To be continued……….

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