Motorola Cuts 4000 Jobs, Loses Third Spot To LG

Motorola has lost its lustre and is slowly sliding down as one of the top mobile phone manufacturers worldwide as South-Korean newspaper JoongAng Daily reports that LGE is expected to sell more phones than Motorola.

Even though the figures were for projected sales in 2008 and the difference between the two was only 0.1 percent (100,000), the momentum has seemingly shifted from the US mobile phone company to LGE which for the first time is clocking more than 100 million units.

Nokia is still the biggest handset vendor by sales volume with an estimated 470 million units and almost as big as the other top four vendors - Samsung, LGE, Motorola and Sony Ericsson - combined.

It is interesting to find out that unlike Nokia or Sony Ericsson, neither Samsung nor LG are planning to release their own marketplaces or online services.

Figures could be slightly different if revenues, rather than sales figures are factored in. Even if Apple doesn't sell many mobile phones, the fact that each of them costs a whopping £350 as pay as you go means that each of them is worth at least 70 Sony Ericsson's J110i (available at Carphone Warehouse for £4.84).

In related news, Motorola is expected to cut 4000 jobs on top of the 3000 job cuts that were announced back in November and is expected to save up to $1.5 billion from the combined restructure. Motorola is also expected to focus almost exclusively on Google's Android platform.

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Our Comments

LG has managed to position itself as a cheaper alternative to its more expensive rival, Samsung, while bring brand new and innovative mobile phones - like Chocolate - to the market. Motorola will likely bring up more new devices but one can bet that none will be as successful as the original Razr or Apple's iPhone.

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