Motorola quits Korean market, citing too strong local competitors

[Korean]

Motorola to Exit South Korea, Cutting 500+ Jobs

Motorola to exit South Korea in 2013, as Google restructuring claims another 500+ jobs

Motorola Mobility is to close down almost all of its operations in South Korea next year as its reorganization under the ownership of Google continues. The phone maker will keep 10 percent of its local R&D staff, who will be offered relocation packages. Two business units will remain but the company will cease selling and marketing mobile devices.

The announcement is part of the company’s global reshuffle which has seen it layoff approximately 4,000 employees and close down of most of its international websites less than a month ago. Korea was one of the few places to have a Motorola Mobility research and design center, and this will also close, as the company confirmed in a statement to TNW:

Motorola Mobility isn’t alone in fleeing Korea, where local firms largely dominate the mobile market. Recently, rival phone maker HTC closed its offices in South Korea as Samsung, Apple and LG phones continue to hold the most sizable market share. Local media suggests there are around 40,000 of its handsets actively in use in Korea, through operators SK Telecom and KT.

Motorola's phone designs will get worse as it loses it Korean R&D center.

http://blogs.wsj.com/korearealtime/2012/12/11/motorola-exits-the-republic-of-samsung-er-korea/

Here are cellphone sales figures for the January-to-September period in South Korea:

All cellphones including smartphones

Samsung 10,241,600
LG 2,762,100
Pantech 2,553,400
Apple 246,000
Motorola 40,800
Sony 6758.TO -1.46% 39,600
HTC 38,400
Nokia 9,800
RIM 3,100
Others 34,000
Total 15.97 million

Holy ****, not even Apple iPhone series can compete in Korea.

 

[ChineseTiger1986]

Holy ****, not even Apple iPhone series can compete in Korea.

Yep, try to not buy the airplane and Windows from USA.

 

[Audio]

Motorola always had crappy phones, with even more crappy user interfaces. I had a Star Tac in the 90's, sucked balls.
Also the reason why Korean manufacturers do so well in Korea is probably patriotic. And most of all, Korean manufacturers probably give good bulk deals to telecom companies and they themselves probably have a preference for Korean companies as well.

 

[terranMarine]

There's not much hope for blackberry, as for Nokia they are struggling too. Samsung is crushing the competitors with their products. It's just a matter of time before Apple's sales will drop. How many "innovations" can Apple come up with when they have to compete with this Korean giant? Last but not least Japanese companies Sony, Sharp and Panasonic aren't doing all too well with fierce competition coming from its neighbors including China and Taiwan. The sun sure isn't shinning on Japanese companies.

 

[haviZsultan]

Actually sounds real good to me. You have brands so strong that foreign brands simply do not sell which is the mark of a strong economy stable within... and thing is Korean products are reaching the world.

Wish we would have that in Pakistan where everything is imported. Korean export model may be one of the best in the world. We should be trying to replicate it. The focus on exports allowed Korea to build up a very solid line of products. GDP per capita about 2000$ in 1980 it rose to the current 30000$ from. Something to learn here for India and Pakistan. They closed the gap in 30 years and in our countries people are struggling.

 

[Kolaps]

HTC is also quit from South Korea market.

It's well known that S Korea is very nationalistic and protective. They set a rule to make foreign companies hard to sell their product, at the same time rising nationalistic issue to just buy Korean product only. A country that just want to win all for themself.

 

[kawaraj]

World should boycott Korean jucky products as it's never mutually beneficial. They have too many unnoticed non-trade barriers around people seldom are aware.

 

[senheiser]

HTC is also quit from South Korea market.

It's well known that S Korea is very nationalistic and protective. They set a rule to make foreign companies hard to sell their product, at the same time rising nationalistic issue to just buy Korean product only. A country that just want to win all for themself.

thats true it was completely retard decision by the eu having free trade with south korea they are pure nationalistic like no other people. Whole wold should ban their products but europe should also be more like south koreans and like east asians in genral as all east asian countries are very protectionist.

There's not much hope for blackberry, as for Nokia they are struggling too. Samsung is crushing the competitors with their products. It's just a matter of time before Apple's sales will drop. How many "innovations" can Apple come up with when they have to compete with this Korean giant? Last but not least Japanese companies Sony, Sharp and Panasonic aren't doing all too well with fierce competition coming from its neighbors including China and Taiwan. The sun sure isn't shinning on Japanese companies.

so is htc now too their sales dropped as well.

 

[ChineseTiger1986]

thats true it was completely retard decision by the eu having free trade with south korea they are pure nationalistic like no other people. Whole wold should ban their products but europe should also be more like south koreans and like east asians in genral as all east asian countries are very protectionist.

China will import 10 trillion USD of goods until 2015, so don't blame us if you have no other good to sell to us.

China to cut import duties - Xinhua | English.news.cn

 

[KRAIT]

Motorola always had crappy phones, with even more crappy user interfaces. I had a Star Tac in the 90's, sucked balls.
Also the reason why Korean manufacturers do so well in Korea is probably patriotic. And most of all, Korean manufacturers probably give good bulk deals to telecom companies and they themselves probably have a preference for Korean companies as well.

Moto Razr was quite a hit in India. I had Motorola A1200. That was a really good touch screen phone in that time.

Then I bought Milestone (Droid). Regret the decision even now. Too many problems.

 

[Audio]

Moto Razr was quite a hit in India. I had Motorola A1200. That was a really good touch screen phone in that time.

Then I bought Milestone (Droid). Regret the decision even now. Too many problems.

Dude, admit it, you just wanted to look hip when you answered the phone by flipping the cover in a macho way.

O,ye, i googled A1200. All you need are some girly stickers on the back. the droid thing actually looks decent.

 

[KRAIT]

Dude, admit it, you just wanted to look hip when you answered the phone by flipping the cover in a macho way.

Nope. I don't buy things for swag. Pretty specific when it comes to gadgets. I likes the transparent cover. I wanted to have touch screen one as I used to text a lot. Also I wanted a good camera which as better that time.

Even with Droid, I took many days to decide before taking. If it doesn't meet my requirements, I don't buy them.

 

[xuxu1457]

Samsung up to 19% Korea GDP in 2011, but only 196000workers;
Samsung, HYUNDAI, LG, SK, Lotte the 5 groups up about 50% Korea GDp, so Korea also is called Republic of Samsung,
but they are all consumer electronics, automotive, retail, you can make money by these big goups, but just so so to one country. India is more stronger than Korea as a country

 

[Zabaniyah]

Motorola's cellphones sucked, period.

I once bought a very expensive Motorola Razr series phone back in 2006.

It was the worst cellphone I've ever had.

I was seduced by its sleek and sexy looks

No surprise that they cannot compete with the likes of Samsung and LG

Best if they get into the business market like Siemens did (another fail cellphone designer/developer).

 

[XiangLong]

Has Motorola actually even released smartphones yet?