In a conference call Motorola’s executive vice president and president of its Semiconductor Products Sector, Fred Shlapak, said that, Several companies have announced changes in the way they will participate in the cellular handset business. We see this as the beginning of a major discontinuity that parallels the PC (personal computer) industry in the early 1990s with the rise of the motherboard industry and major branded assemblers – where value is derived by competing on the basis of brand, distribution and style.
Shlapak said that this move would allow handset manufacturers to focus on brand loyalty, marketing, features and style and then, ignoring mobile powerhouses Ericsson and Nokia – Ericsson made a decision in June to outsource its handset manufacturing plants – Shlapak declared that, Motorola is the only company that can change the rules in this way.
