According to a Chinese-language Commercial Times report Motorola Mobility plans to phase out from the feature phone market and may suspend its feature phone business by the end of 2012. It has also been reported that Motorola is toying with the idea to exit the entry level Smartphone. Since Google has been hoping that the handset vendor will switch its focus to the development of innovative products instead of counting on production based on economies of scale, it remains to be seen whether Motorola will also withdraw from the CNY1,000 (Rs 8,000) Smartphone segment in China. If Motorola is thinking about such a move in China it is likely be followed in other markets also. From the perspective of Indian mobile customer's it will not be a big deal for because they have very little presence in Indian feature phone market with around 5 models being currently sold and none of them being really popular expect Motorola's Fire and Fire XT.
If Motorola takes this move then Motorola will become the third company to get out of the feature phone market after Sony and HTC. HTC has also declared that it will not focus on the entry level Smartphone market any more, where currently it has HTC Explorer.
These three Smartphone vendors are struggling hard to retain their market share seems to be betting on Smartphone market, which according to Gartner grew more than 47 per cent compared to a negative growth in the feature phone market worldwide. Even the recent survey done by Mobile Indian showed the huge decline in user interest in Feature phones.
Source : Themobileindian