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June 6, 2007 / Mridul

MotoRazr & A380: The Stark Similarities

Two of the greatest and the most recognized products of our generation come from Motorola and Airbus. They are the world famous MotoRazr and Airbus A380. Both completely different yet having many strange similarities.

MotoRazr completely changed Motorola’s fortunes giving the mobile phones manufacturer a huge advantage over its arch rival Nokia which dominated the market for years. Although Nokia still dominates the market but Motorola completely made the Finnish giant to panic. Motorola, by launching MotoRazr, took the world by storm. The phone is about to achieve the 10 million mark in sales.

No other manufacturer has been able to challenge the Razr; not the other mobile phone companies but the Razr itself ate the Motorola Company. Motorola completely and wholly committed itself to the development & marketing of the Razr.

Motorola made millions of phones and from them made billions, doubled its profits while its Nokia’s profits halved. But now Motorola has no successor to continue the Razr’s legacy. At the time when the mobile users are asking for high speed connectivity like 3G, Motorola emphasized on design. End result, Motorola now has nothing to offer as far high speed connectivity or multimedia packed phones are concerned.

Motorola’s profits turned into losses forcing the company to cut 7,500 jobs. After giving the world the most successful mobile handset ever Motorola has just nothing to offer which could excite the customer.

Now Airbus A380. This ‘bird’ attracted the whole world, camera persons scrambled on airports’ roofs to get a glimpse of this super jumbo. Airbus dubbed it as the solution to the rapidly increasing passenger pressure on the airport terminals. The European giant presented it as a fitting replacement of the aging fleet of Boeing 747s worldwide.

The first double decker passenger aircraft is truly the first luxury aircraft. Virgin Atlantic and the Emirates have planned spas, swimming pools & lavish bars onboard. But the company has completely failed to deliver on time.

Delivery is late by 18 months, two of the major buyers (UPS & FedEx) have backed out and the Airbus is struggling to break even. A380 became the priority and the company neglected the other products betting only on the super jumbo. Production and up gradation of aircrafts like A350 was put on the back burner which meant that Airbus lost on every front.

With the production went down the two CEOs and the company continues to lose money. There’s very little chance that the company would end up in profits with this aircraft; they need to sell 250 crafts just to break even and that figure remains elusive, at least for now.

That’s the tale of two products which completely changed the world and, unfortunately, also their companies.

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2 Comments

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  1. Sam / Jun 7 2007 10:26 pm

    They actually do already have firm orders for 160 aircraft even before the first one has reached the customer…

  2. Mridul Chadha / Jun 11 2007 9:45 am

    But Sam Airbus needs to sell at least 250 planes to break even. Even if the company does that one cannot expect it to make big profits.

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