Nokia, Motorola Mobility and Research in Motion (RIM) are likely to be torn down and sold in parts, separately, due to continual losses at their handset businesses.

Motorola is likely to be the first to bear the brunt after posting losses of US$86 million, US$233 million and US$527 million in the first three quarters of 2012, respectively, even though it has undergone a series of restructuring in corporate structure and product lineup after being acquired by Google.

Continual losses at Motorola also resulted in a 20% sequential decline in profits for Google in the third quarter of 2012, raising the possibility that Google could liquidate the handset unit.

It is also not necessary for Google to keep the hardware unit, since it has developed a business model which enables the launch of hardware devices in cooperation with ODMs.

Nokia saw its net losses widen to EUR969 million (US$1.27 billion) in the third quarter of 2012 from a loss of EUR68 million of a year earlier, as revenues declined 19% to EUR7.2 billion (US$9.45 billion).

If sales of Windows Phone 8 models fail to generate a turnaround in its handset business, Nokia will face increasing problems with regards to cash flow.

Nokia might be forced to bring in strategic partners for its location and commerce service unit or Nokia Siemens Networks through the release of shares in order to stabilize its financial structure.

Although RIM managed to narrow its losses to US$0.27 per share in the second quarter of fiscal 2012 which ended August 31 from a loss of US$0.37 recorded in the previous quarter, the vendor is unlikely to swing back to profitability until after the launch of its new BlackBerry 10 platform.

However, sales of BlackBerry smartphones to emerging markets still remain relatively strong, which has enhanced its cash position, while reducing the urgency for the brand to make a critical decision as whether to keep its hardware business or not.