Motorola unveils radical European comeback strategy

Seemingly unworried by the consequences, Motorola has made the radical decision to focus its cellphone activities on a small number of countries in Western Europe together with concentrating its efforts by only working with two key partners: Carphone Warehouse and O2.

For a company experiencing long-term upheaval, a dramatic reshaping of its European strategy was perhaps to be expected.

The apparent logic behind this new marketing focus is Motorola's strong relationship with Telefónica (O2's parent company), together with the retailing expertise of Carphone Warehouse across Europe--especially after this company sold around 400,000 pink Motorola RAZR devices in the run-up to Christmas 2005.

This move, which would involve a significant reduction in its European sales force, will also see no major handset announcements until this time next year.

The company made no comments on how it would manage the relationship with its other operators and retail partners, who would be expected to either be bemused or grossly affronted by Motorola's new approach to the European market.

This new strategy, which will not come into effect until the second half of 2009, is thought to be part of a wider plan to build up the handset division for a €1.4 billion sale or flotation of the group.

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