Short-term and Long-term View of Motorola's Cell Phone Business

Implications: Over the long-term (five years and out), the low-cost Asian phone manufacturers are becoming more competitive with features and low cost, making it diffult for the large vendors to sustain their R&D in the US or Europe.  In the short run, the Asian manufactures are still more focused on the low to medium end phones as they grow their R&D capabilities for high end phones such as smart phones.  In addition, the iPhones and G-phones (By Google) will have their own brand and even their own subscribers.  They will outsource phone manufacturing and even design to Asia. (e.g., iPhones were manufactured in China)

Analysis:  In the short term, Motorola will eventually find the next model that will be successful for a release or two.  But they face fiece competition from Nokia, Samsung and LG, especially in Asia where it is increasing becoming the main consumer market for handsets.  Over the long-term, one wonders what is the sustainable competitive edge of Motorola?  Chip vendors will build the latest chips based on the latest technologies.  Mobile software and design houses will produce more and more complete software stacks.  The handset makers will take on the role of manufacturering and some design and development.  Comsumer giants such as Google, Yahoo, Myspace and Apple will want to slap their labels on the phones.  Which direction is Motorola going?