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Telecom & Wireless

Interest In Motorola (MOT) Handset Business Fades

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By Douglas A. McIntyre Published
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After kicking the tires at Motorola’s (MOT) handset unit China’s Huawei Technologies said it would pass. The Asia-based company is one of the largest makers of handsets in the world. According to Reuters "Huawei said it was not interested in buying the business as it is focused on selling its phones under the brand of its mobile operator customers, while Motorola sells phones to consumers under its own brand."

Although Motorola is silent on the issue, there is every chance that Nokia (NOK), Samsung, and Sony Ericsson have considered making a run. They could pick-up Motorola’s 12% of the global handset market and the 35% it has in the US. This should be especially attractive to Nokia which is trying to improve its share in America.

The invisibility of interest is telling. Experts in the handset field do not think that Motorola’s operation can be fixed, at least not for a long time and by suffering billion of dollars more in losses.

Carl Icahn made a mistake getting into the MOT stock. The company now has a market cap of $21 billion and its home mobility and enterprise units make a lot of money. Motorola can’t give the handset operation away for free.

Douglas A. McIntyre

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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