What do we have to talk about today?

What do we have to talk about today? We have already moved over to March 23, 2007 and there is still no news about Nokia or Motorola buying Palm. The rumour has been on the news and blogosphere for most of this week, but nothing substantial hasn't happened. But what a week? We've been into negotiations. We got a few steps forward. But that's another case. More about it later.

I've been blogging about it, the Palm case. Yesterday's big news was the results alarm from Motorola. They are correcting their estimate for revenue growth. They miss their target with one billion dollars. The result is going to be negative. The price war with Nokia has been taking the toll.

Motorola has to change strategy or soon they need to change management. The statement of Motorola passing Nokia in market share within 1 000 days has to be changed. It might take 10 000 days? Motorola is bleeding and it's estimated that Nokia is going to gain from this. Price pressure from Motorola will decrease. What about the rising giants in Asia? Chinese manufacturers, what about their ability to play with best prices?

What if Symbian isn't the right thing in the long run? That could explain one thing that happened about a month ago. There was a company that dropped a Symbian project, but it's probably not a coincidence with this. I don't think so. But how will they get Symbian into USA? I'm so confused. There is another thing. That's about Texas. That was also related to Symbian. Is this about operating system sea change?

Nokia has said that the mobile phone will become the iPod killer. That's quite a statement for a company that has to get its act together in the US market. Apple is so much ahead, at least with the MP3 players, and about the iPod we don't know yet. Let's wait and see. At the end of the year we are going know more.

The show must go on. We are most likely going to hear things about Motorola, Palm and Nokia in the coming days. The companies have not been denying the rumours. Palm might be the big winner. The price tag 2 billion dollars for a few percentages more market share is considered high for Nokia. Palm isn't the best choice technically either. A merger and mix of Motorola and Dell might lead to a happier marriage.

Problems at Motorola

Problems. The two good years with thin razor sales booming is over. The price war is taking its toll and there is the speculation that Nokia will be the winner in the cheap phones race. Nokia nd Motorola have been tagged as the possible buyers of Palm. Technically Palm would fit better into the Motorola package. Nokia would love to get some market share boosting in US, but the price of two billion US dollars is estimated as a high price for Palm. Motorolas problems aren't over yet. They have been fighting hard. A few months ago Motorola directors promised to take over Nokia as the market leader in 1000 days. The counting hast to start from a new base line. A new strategy is emerging.

Motorola Announces Revised Guidance for First Quarter and Actions to Improve Profitability and Shareholder Value

• Greg Brown Appointed President and Chief Operating Officer
• Thomas J. Meredith Appointed Acting Chief Financial Officer
• Accelerates Repurchase of $2.0 Billion of Common Stock; Increases Existing Share Repurchase Program to $7.5 Billion

SCHAUMBURG, Ill. – 21 March 2007 – Motorola, Inc. (NYSE: MOT) today revised its previously announced first quarter 2007 guidance and provided a revised perspective on the full year. The first quarter revision was prompted by lower than anticipated sales and operating earnings at the company’s Mobile Devices business. Motorola’s Network & Enterprise and Connected Home Solutions businesses continue to perform in line with the company’s expectations.

The company also announced a series of actions designed to improve execution, drive profitable growth and enhance shareholder value. Today’s announcements include:

• Steps to strengthen the performance of the Mobile Devices business
• Appointment of Greg Brown to President and Chief Operating Officer, effective immediately
• Appointment of Thomas J. Meredith to acting Chief Financial Officer, effective April 1, and the retirement of David Devonshire
• Accelerated repurchase of $2.0 billion of common stock
• Increased existing share repurchase program to $7.5 billion

“Performance in our Mobile Devices business continues to be unacceptable, and we are committed to restoring its profitability,” said Edward J. Zander, Chairman and Chief Executive Officer of Motorola. “After a further review following the leadership change in our Mobile Devices business, we now recognize that returning the business to acceptable performance will take more time and greater effort.”

“The steps we are announcing today will enable Motorola to perform better for our shareholders, customers, partners and employees. I am confident Motorola has the right assets, brand and intellectual property, as well as a strong heritage of innovation and a strong balance sheet – all of which we will draw upon in the coming months.” added Zander.

“Motorola has a proven track record of returning capital to shareholders and we regularly review the company’s capital allocation strategy. Today’s announcement to accelerate $2.0 billion of share repurchases and increase the size of our current share repurchase program to $7.5 billion demonstrates our ongoing efforts to deliver superior shareholder value,” said Zander.