Ed Zander disses Nokia's Navteq buy
Posted
Oct 10 2007, 04:36 PM
by
Kim Peterson
Meow! Motorola chief Ed Zander sharpened his claws and told Nokia that it can have Navteq. He didn't want it anyway.
"We looked at it and went on our way," Zander said Monday. "We didn't even think about it." Nokia is buying digital mapmaker Navteq for $8.1 billion, a price Zander called "stunning."
What I find more noteworthy are Zander's comments that Motorola is going to remain a hardware company, and isn't about to begin offering its own applications for use on mobile phones.
"That's not our strategy," he said. "We are not in the applications business."
A bit of a risky move, isn't it? Considering that cell phone hardware is becoming more and more commoditized? And considering that Motorola's phones, including the Razr, are eliciting a collective ho-hum?
Motorola's share of the global handset market dropped to 14.6% from 21.9% last year. Sure, getting into applications wouldn't sit well with Motorola's customers, who are all developing their own software. But by staying out of the game, Motorola is cutting itself off from a big revenue stream in the future.