Motorola considering separation of Mobile Devices from its other businesses
When Motorola first introduced its RAZR to the mobile world many years ago, it took the market by storm.
Since the introduction of the RAZR however, lacklustre followup models and little in terms of innovative new handsets has seen the manufacturer's fortunes face a steady decline. This past quarter, Motorola's mobile devices division faced losses of $388 million. Compare that figure to $341 million in earnings over the same quarter a year ago, and you get a good impression as to the woes currently facing the mobile manufacturer.
Following ongoing rumours that Motorola may indeed drop its mobile devices unit completely and venture into other areas, the company has now announced that it is indeed exploring the possibility of re-shuffling its business structure. It states that "the company’s alternatives may include the separation of Mobile Devices from its other businesses in order to permit each business to grow and better serve its customers."
Greg Brown, President and Chief Executive Officer at Motorola says:
"All of our businesses have exceptional people, products and intellectual property and the ability to achieve category leadership in their markets. We are exploring ways in which our Mobile Devices Business can accelerate its recovery and retain and attract talent while enabling our shareholders to realise the value of this great franchise."
Though no immediate plans are revealed, it seems that Motorola may indeed sell its mobile devices division or spin off the division into a company of its own.
Official press release: Motorola to Explore Structural and Strategic Realignment of its Businesses to Enhance Shareholder Value
