?? Motorola’s Comeback Kid Strategy
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OPINION
The road to third place
Phonemaker Motorola is mounting a comeback and is betting big on outsourcing.
The Lenovo-owned mobile phone company has been outsourcing 90% of its design to third-party providers. The firm is very confident in this business model, so much so that Lenovo executive vice president Matthew Zielinski said earlier this year, “I would bet a paycheck that in three years we will be number three around the world.”
Gunning for third is a very feasible goal for Motorola. The race for supremacy in the smartphone industry remains close. Counterpoint Research ranks Samsung first with a 19% global market share. Apple comes in second with 16%, followed by Xiaomi with 15% and OPPO and Vivo with 9%.?
Motorola's reentry into the competitive phone-making segment came from rebooting its seminal Razr line into a foldable phone. To continue its momentum, the electronics manufacturer is leveraging outsourcing to create brand-new and affordable phones.
A familiar route
Motorola is not a newbie to the outsourcing world. In the early 2000s, it signed several billion-dollar deals with third-party manufacturers. The initiative enabled the company to leverage materials such as key components and wring out manufacturing costs.
It outsourced supply-chain services, including design, new product introduction, printed circuit board assembly, test and systems build, and aftersales support, which allowed for rapid and cost-effective production of its mobile phones. By 2006, Motorola was the second-largest phone maker in the world after Finnish company Nokia.?
Motorola still leverages a similar tactic today. It heavily relies on Dixon Technologies, a major Indian original design manufacturer (ODM), to produce its devices. In the smartphone industry, an ODM handles everything from initial design concepts to final assembly, which allows brands to reduce costs and speed up time-to-market. This differs from traditional contract manufacturing, where brands provide their designs for production.
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OFFSHORE & GLOBAL NEWS
Hottest takes from offshore staffing, remote, and the future of work!
?? The End of College Degrees in Hiring?
Another seismic shift is reshaping the American workplace. According to the National Conference of State Legislatures (NCSL), as we head into 2025, states are leaning into skills-based hiring, prioritizing certifications and apprenticeships over traditional degrees to combat workforce shortages in critical sectors like IT and energy.?
But it’s not just new talent stepping in—retirees are making a comeback, thanks to evolving policies that allow them to rejoin the workforce without jeopardizing their pensions. Employers are responding with upgraded benefits, including expanded mental health resources and robust family leave, signaling a more flexible and inclusive approach to employee retention.
While the doors are opening wider for both skilled workers and returning retirees, Gen Z's entrance into customer service roles is raising some eyebrows. A recent survey by ResumeTemplates found that 24% of U.S. hiring managers blame client losses on issues like unprofessional tone, tardiness, and poor attention to detail among Gen Z workers in customer-facing roles. While some employers are rethinking their hiring strategies, experts emphasize that proper training and feedback can help this digital-savvy generation thrive, proving that early career missteps are a hurdle—not a roadblock.?
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