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Moto Getting Out Of Cell Phones Jibes With Motos History

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by Kevin Maney
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Jan 29 2008 12:00am EDT

Moto Getting Out of Cell Phones? Jibes with Moto's History

A report this morning from Nomura Securities suggests that Motorola might exit the cell phone handset business. The report is entirely speculation, but is it ridiculous? I mean, Moto made the very first cell phones. After that it changed the industry not once but twice -- first with StarTAC and then with RAZR. How could this company get out of this business?

Actually, Motorola has made a habit of exiting big businesses that once seemed an integral part of the company. Moto started by making car radios (hence the company name). When that got too competitive, the company got out -- and made TV sets. When all the Japanese makers came in, Moto sold its TV business and moved on. It started and sold a major semiconductor business along the way.

For insights into how that strategy helped Moto thrive over the decades, check out Built to Last by Jim Collins and Jerry Porras.

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