14 DAY TRIAL // Motorola is currently positioned as the second mobile phone producer at a worldwide level. The sad thing for this company is that its place is currently being threatened by Samsung, with high chances of actually being surpassed in phone sale numbers.
Motorola won this second position after releasing their RAZR phone models which finally sold in more than 50 million units at a global scale. Still, this handset's glory time faded a long time ago and Motorola failed in coming up with any new phone concepts as original as the previous one.
Over the last year, Motorola has dropped from 22 percent to a mere 15.3 percent market share on account of some problems with their products. Even more, this company has had to face a long series of management problems which also greatly weakened its position on the telecommunications market.
The high chances of losing this second place come even more as a disappointment for Motorola as they had their hopes up high for reaching the first place. This is what they say, although there was a long way for them to go and a hard struggle to make in order to reach this level. Without another breakthrough phone model, such as the RAZR, Motorola had little chances of gaining the first place.
Moreover, Motorola had to face its most dramatic profit rate fall during this spring, when it cut down the price on RAZR handset models in order to increase their sales number. "Our retail sales checks suggest that demand for (Motorola's) higher-end phones is also tepid and not likely to offset weak sales of low-end phones despite continued price reductions", said J.P. Morgan analyst Ehud Gelblum.
In order for Motorola to maintain its position as the second world mobile phone manufacturer it needs another major phone concept release and a long term restructuring plan.