Motorola Betting Big On Google's Android To Take On Apple, Rivals

Ed: Motorola, Nokia, Sony, Samsung, and the Taiwan companies need to learn that the cell phone is no longer just a low-price, hardware business. 

• Companies like Apple, RIM, and Palm have converted into an integrated SaaS offering. 
• It won't be long before web 2.0 tools for social media become a necessary part of the business. 
• Microsoft will enter, when it is too late to build.

Entrepreneurs, ramp up and get sold. 

Motorola Betting Big On Google's Android To Take On Apple, Rivals

Motorola (MOT) continues to overhaul its depleted cellphone division under new CEO Sanjay Jha, who came over from Qualcomm (QCOM) this summer. Among the big changes, which the Wall Street Journal says could be detailed during the company's Q3 earnings call Thursday morning:

• Thousands of layoffs.
  
• A new mobile phone strategy that includes betting big on Google's (GOOG) Android mobile operating system.

The Journal says Motorola will stop working on several mobile operating systems (and could cancel dozens of phone designs) to focus on three platforms: Android for consumer-focused phones, Microsoft's Windows Mobile for business-focused phones, and an internal platform for lower-end phones.

This sounds smart to us. Android, while not as elegant as Apple's industry-best iPhone software, is equally as powerful -- and with some software and user interface updates, matched with good hardware, could be a strong mobile platform. (Certainly as good or better than anything else Motorola has shipped recently.) Windows Mobile needs work, but it can handle enterprise stuff pretty well, which Android doesn't yet.

One thing that could be tricky to juggle: Making Motorola's flavor of Android unique (and good) enough that its phones don't simply become a hardware commodity, while still allowing them to run apps designed for other Android phones.

What this also means: AT&T (T) and Verizon Wireless (VZ), the two biggest U.S. wireless carriers, will eventually have to suck it up and start selling Google-powered phones. So far no. 4 T-Mobile (DT) is the only U.S. carrier to sell an Android phone, while no. 3 Sprint Nextel (S) eagerly awaits theirs.

Motorola Speed Dials Cell Overhaul

New Mobile Chief Plans to Slash More Jobs, Focus on Google Software to Simplify Design and Cut Costs

By SARA SILVER

Motorola Inc.'s new cellphone chief is moving quickly to scale back the struggling division, simplifying the way it makes devices and cutting additional jobs.

Sanjay Jha, who also became Motorola's co-chief executive in August, has decided to focus on Google Inc.'s Android operating system as the software platform for Motorola's showcase phones, according to people familiar with the matter.

Mr. Jha is expected to detail his plans -- which will likely include thousands of layoffs -- as early as Thursday when the company reports earnings, these people said.

The company has announced 10,000 job cuts since early last year. Motorola ...

Will Motorola Go All-In On Android? It Has No Other Choice.

Motorola’s new co-CEO Sanjay Jha has a plan to save the beleaguered mobile handset maker: go all-in on Google’s Android mobile operating system. According to a report in the Wall Street Journal (behind the pay wall):

Sanjay Jha, who also became Motorola’s co-chief executive in August, has decided to focus on Google Inc.’s Android operating system as the software platform for Motorola’s showcase phones, according to people familiar with the matter.

Mr. Jha is expected to detail his plans — which will likely include thousands of layoffs — as early as Thursday when the company reports earnings, these people said.

The rumor is that Motorola will focus all of its efforts around three core operating systems for its phones, with Android becoming the central platform for “mid-tier” phones with Internet capability. The other two operating systems it will support will be Windows Mobile on the high end and its own P2K on the low end. In other words, Android phones will become its bread and butter.

Given this potential strategy, the 350-person Android team that Motorola is recruiting while it considers another massive round of layoffs elsewhere makes more sense. It’s Android-powered social networking phone looks like it will be the first of a long line of Internet-capable phones.

Betting the farm on Android would be a gutsy move, as it is still an unproven operating system. And, as Om points out, it could be too little, too late for Motorola’s cell phone business, which has not turned a profit since late 2006...