Moto Making Moves
By Matt Wood in News on Jan 31, 2007 1:07PM
Schaumburg-based Motorola is still doing what it can to survive the competition from makers of lower-priced handsets, as cell phones become more and more of a commodity. Perhaps in an attempt to sex up their products in preparation for the arrival of the Scarlett Johansson of cell phones, they recently purchased DARTdevices, a small California software shop that "develops technology and applications to simply and securely connect mobile phones, PCs, Set-top boxes, Internet servers and other consumer electronics," according to their bare-bones website (they're in "stealth mode," whatever that means).
This is pure speculation on Chicagoist's part, but we wonder if this means we can expect some Motorola cell phone convergence with home media devices, say, like the cable set-top boxes they already make or a Windows Media Center PC. Media convergence is the way to go if you want to create a buzz these days, even though statistics show that many people just a want a phone that dials numbers. Remotely controlling a media server with your phone, wirelessly browsing your shared music and video files while you're on the go, or even a Sling Box-type of streaming could all be within the realm of possibilities.
Moto needs to do something: their stock price and profits are in the toilet. The stock dropped 19 percent in '06, and earnings were down 48 percent in the last quarter. Things are looking so bad that the Dr. House of the business world, Carl Icahn, has asked to be put on the case to diagnose the problem. Icahn is an investor and rather promiscuous corporate member, sitting at the big mahogany table of at least six companies. He also happens to own $66 million of Motorola's stock. He has made his name taking over companies and forcing radical changes, like changing directors or strategies, though unlike Gregory House, his treatment doesn't always work. He nearly ran TWA into the ground in the late 1980s, but apparently something is working; he's number 24 on Forbes' list of wealthiest Americans. Whatever work,s Carl; we just know that if we were Motorola CEO Ed Zander, we'd be updating our resume.