The Register® — Biting the hand that feeds IT

Feeds

Motorola: leaving its symbiotic relationship

Moving on

  • print
  • alert

Regcast training : Hyper-V 3.0, VM high availability and disaster recovery

Motorola has opted to sell its shares in Symbian as it pursues an alternative handset path based on Linux and Java. The decision is surprising, given Symbian's improving prospects, but Motorola's faith has moved onto other platforms. Yet Samsung is also building devices for a range of operating systems and bought a stake in Symbian only this year.

Nokia and Psion have emerged as the preferred buyers for Motorola's Symbian stake, in a deal which looks set to net Motorola about $90 million. The deal
would see Nokia become Symbian's largest shareholder for the first time, increasing its stake from 19% to 32%. Psion's share will expand to 31%.

However, while the sale would appear to stand every chance of taking place, it remains possible that one or more of Symbian's other shareholders - Ericsson, Sony Ericsson, Siemens, Samsung and Matsushita (Panasonic) - may yet seek to increase their own holdings.

The sale is both unprecedented and unexpected in the life of Symbian, which appears on the verge of achieving its much anticipated breakthrough into the
mass mobile phone market. Two weeks ago, Symbian reported shipments of 2.68 million units in the first half of 2003, almost 12 times the 0.23 million
units shipped in the same period in 2002.

Certainly, Motorola's return on its Symbian investment appears relatively small, taking into account the company's rapidly improving prospects and the
fact that further investment by shareholders in Symbian would appear unnecessary or at least minimal for the foreseeable future. Motorola's original 23% stake in Symbian was valued at $46 million five years ago.

Motorola had little to say regarding its decision other than to state its continuing commitment to Symbian as a licensee. However, in a statement,
Motorola said it sees mobile Java, Java 2 Micro Edition (J2ME), as its mass-market application environment of choice. The company is also putting
considerable effort into developing smart phones around other platforms, notably the forthcoming Microsoft Smartphone-powered V700, which has yet to
be officially announced, and the MontaVista Linux-based A760.

In this light, Motorola's decision is perhaps more understandable and may simplify relationships with customers that want to specify alternatives to
Symbian. However, Samsung shares a similar agnosticism with regard to mobile operating systems and is building devices around Symbian, Microsoft and
PalmSource software - but still decided to buy a Symbian stake in March this year.

Source: Computerwire/Datamonitor

Related research: Reuters Business Insight, "The Wireless Outlook: Dealing with decline" (RBTC0061)

Regcast training : Hyper-V 3.0, VM high availability and disaster recovery

More from The Register

1,000 O2 staff chose redundancy over Capita
Betrayal, or just decent terms?
Google launches broadband balloons, radio astronomy frets
A careless Loon could blind the square kilometre array
 breaking news
Pttow! Ofcom kicks hams out of MoD bands
Geet off my land, you, you ... 'secondary user'
 breaking news
Now you can use your phone instead of your wallet at the ATM, too
Blimey, these little paper towels out of the vending machine are really expensive
 breaking news
UK.gov's £530m bumpkin broadband rollout: 'Train crash waiting to happen'
Whitehall whispers of damning watchdog report next month
 breaking news
MySpace zaps millions of teens' tearful rants, causes wave of angst
'Your crappy redesign SUCKS, I wanna read my blogs' screech users
 breaking news
Microsoft Office 365 on iPhone NOW: No, we're not making this up
Word, Excel, Powerpoint for your pocket-stroker
 breaking news
EU signs off on eCall emergency-phone-in-every-car plan
GPS and a mobe in every car - do you suppose the NSA would fancy that?