Mobile Phones Guide
Motorola to Exit South Korea in 2013 as Part of Restructuring Process
In August last year, Google paid a whopping $12.5 billion to acquire Motorola to strengthened its foray into the mobile market. Most crucially, Motorola held many important patents and acquiring Motorola would therefore beef up Google's mobile patent portfolio and help it protect its fledgling Android franchise.
As part of its latest reorganization process, Motorola has just confirmed that it will close down almost all its operations in South Korea. Only 10% of its R&D staff will be kept and offered relocation packages. Additionally, only two business units will remain but Motorola will stop selling and marketing mobile devices in South Korea.
This is the official response by Motorola:
On December 10th, we began communicating to staff in Korea our plans to close most of our operations in Korea, including our research and development and consumer mobile device marketing organization. The changes in Korea reflect our plans to consolidate our global R&D efforts to foster collaboration, and to focus more attention on markets where we are best positioned to compete effectively.
Our Home business and iDEN go-to-market operations will continue operating in Korea. We will also continue to provide customer service and warranty support for mobile devices that have been sold in Korea.
This was a difficult but necessary decision. We are very proud of the work done by our talented teams in Korea, and the many contributions they have made to our business over the years. We will offer relocation to about 10 percent of our R&D staff there. For other employees we will strive to make the transition as smooth as possible.
We are grateful for the support of our customers in Korea.
Motorola is not alone because rival phone maker HTC also ceased operation in South Korea and Yahoo is set to follow suit too. Companies see little point in pursuing South Korea because the country is dominated by Samsung and LG.
Source: The Next Web