In a move that may pay nice dividends, Motorola has decided to split the company into two main divisions. With each division focusing on its strengths, Motorola should be able to effectively produce better products all around and contribute to the overall wealth of the company. Yesterday, Motorola confirmed the split of the company would take place in the first quarter of 2011. So while it is not immediate, it is definitely on the horizon and I’m sure they will start making decisions with the split in mind.
Sanjay Jha, one of the two co-chief operatives, will be taking over command of one company – the mobile handsets and set-top boxes division. Meanwhile, Greg Brown, the other co-chief operative, will be overseeing command of the wireless networking business and the radio systems operations. Since no division yields more revenue than the other, the split makes since as one division will not do all the heavy lifting. In 2009, both divisions accounted for the $22 billion in sales. The mobile handset and set-top boxes will continue to have the Motorola brand, and they will be licensing it royalty-free to the other division.
In an interview, Sanjay Jha stated:
“Through 2009, we have improved our balance sheet so that both entities will have solid capitalization to have operational and strategic flexibility.”
With the introduction of the Motorola Droid on Verizon Wireless, the dismal mobile handset operation has been revitalized. It has not seen many good days since the Motorola Razr cell phone. It will be interesting to see how this move pays off in the future, but by the looks of it, it should help.
Read [NYTimes]
Well according to wa? i have seen motorola is best selling phone in the market… but surely after this decision they'll make their self beat-up other brand so hard…
yea i think its good decision from the motorola because motorola is the only company that compete nokia in the world.
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