Rumour: Motorola to exit feature phone business

MotorolaOn the heels of its acquisition by Google, Motorola could be about to exit the feature phone business. A Digitimes report citing the Chinese-language Commercial Times suggests that Motorola could be out by the end of 2012. It adds that Motorola could also withdraw from the low-end smartphone business in China.

Google is apparently looking to focus Motorola away from low-cost high-volume handsets to “the development of innovative products.” It suggests that Google is looking to Motorola to develop flagship devices for its Android operating system rather than becoming a volume manufacturer.

Motorola’s decsion to exit the feature phone business would mean trouble for ODM Arima Communications, the Taiwanese company responsible for much of the production of these devices for Motorola.

Read more: Digitimes