4/22/2008 6:53:00 PM
Motorola target services and applications for recovery
Motorola bosses are targeting services and applications as part of a recovery strategy for the struggling handset business.
The US manufacturer is positioning the Z10 as a multimedia device, with video-editing and blogging capabilities as its main selling points. The Z10 will be available from 30 April (next Wednesday).
Motorola has faced tough times recently, slipping to third in the global handset rankings after making losses of £195m last year and being forced to lay off more than 10,000 staff in the last 12 months. The recovery strategy appears to follow Nokia’s shift to content and services.
However, the Motorola Z10 – which is an upgrade to the Z8 – has been criticised by many buyers and analysts for being too big and bulky. However, Motorola has fixed some of the usability problems that occurred on the Z8, such as the top
row of keys being difficult to use.
Andrew Till, director of applications and E-solutions at Motorola, said: ‘Devices are no longer enough to compete. You need to have 360 degrees.
‘We had a successful product line with the RAZR, but we now have to step up in the high end. A few years ago design was most important in handsets, now it’s feature led and moving towards services.
‘We understand that this market has changed and we are changing the business to [adapt to] that.’
Till emphasised the importance of partnerships in bringing together the whole value chain.
Motorola has partnered with content providers and application manufacturers, such as Shozu – which enables blogging from mobile – Paramount Pictures and software expert Arcsoft.
The Z8 came bundled with The Bourne Identity feature film which, according to Till, was a successful combination.
The Z10 is also expected to have a bundled movie, with rumours suggesting it will be another ‘Bourne’ film.
Having devices with more complex capabilities and embedded services requires training store staff to promote these services to customers.
Motorola will send more of its ‘Moto Agents’ to stores to show retail staff handsets’ capabilities and train them to demonstrate the functions to customers.
Till said: ‘You’ve got 30 seconds when the customer walks in the shop to sell the phone.’
Motorola’s rescue strategy comes as it releases its Q1 results on Thursday (24 April). See Mobiletoday.co.uk for more details.