Manufacturer updates

Motorola was right to start paying attention to its prices in an attempt to boost operating margin. However, you could say that this has backfired, as the market share loss have proved. And, in the medium to long term, market share loss will affect operating margin negatively.

Challenges for Motorola are plenty: they got to "modernize" their handset line-up; we can see that everyday, less and less demand on the Motorola V3 el al. They also need to address the "user friendliness aspect" of their products - something many of us have been claiming for years now, but unfortunately the engineers at Motorola do not seem to hear. Finally, they got to defend that market share. Unfortunately, Carl Icahn, has taken substantial minority stake in the company, which may limit the possibility.

Nokia cannot rest on its laurels neither; the 4.5% market share loss that Motorola has suffered shows just how fickle this market is. Nokia can also start using some of its substantial cash reserves to ramp up R&D and overcome weaknesses in its line-up.

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