Motorola could be ditching its troubled, money-losing mobile phone division after all. The company just issued a release saying it is exploring “structural and strategic realignment” which could include “the separation of Mobile Devices” from the rest of the company.
While Motorola’s (MOT) other units — network equipment, enterprise hardware, gear for carriers, set-top boxes, etc. — are less sexy, its mobile phone division has wet the bed. For the last few years under former boss Ed Zander, the company’s mobile phone business was essentially a one-product line — the Razr — which, while popular, sold for pennies. In a growing global mobile phone market, Motorola is losing share and losing money.
Meanwhile, Nokia (NOK) has maintained its dominance as the No. 1 worldwide, all-purpose mobile phone maker, Samsung took over Motorola’s No. 2 spot with a slick product line, and Apple (AAPL) and Research and Motion (RIMM) have taken over the high-end smartphone market, where Motorola is essentially clueless.
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