Sep. 8, 2007

Yesterday morning, Stu Reed, Motorola's CEO had a meeting with a group of Wall Street analysts.

Some observers say Reed was a bit humble about the company's recent performance, but that he was rather confident about its long-term future.

He also acknowledged Motorola's mistakes over the past year-and-a-half.

When global sales of its once very popular Razr mobile phone began to sank last year, Motorola didn't have any other options, and it began cutting retail prices.

Overall net profits then fell considerably and its market share fell rapidly, along with its stock price.

Reed, who oversaw Motorola's supply chain said bluntly that he'd received direct orders from Motorola's previous CEO, Ed Zander. Then he turned to Motorola's plans to fix the problems.

Reed added that "it's all about profitable market share. We will not grow if it's not profitable. Aiming for the Number One position clearly IS our objective."

He said Motorola will focus on streamlining its device platforms, using common components across different models, cutting production costs, etc.

"We need to do 3 things to steer this ship back on the right course. We won't ride one horse to the bitter end again (one more time)," said Reed.

Amid all the noise and hoopla surrounding Apple's very successful iPhone, Reed promised a steady stream of new and innovative products.

He added "if we've learned one tough lesson over the past eighteen months, its that in a volume business like ours, you don't have any other choice than to be brutally efficient."

Reed added that "near mid-October, there will be another wave of announcements. Trust me, it's best-in-class design... You'll love it, I'm sure."

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Source: India Wireless