Amid rumors that Motorola might exit the handset business all together, the company instead announced this week that it would split into two companies, one being the unprofitable mobile phone unit.
Apparently, this move was prompted by activist investor Carl Icahn, who lauded the decision as “clearly a step in the right direction”. Motorola has yet to find a follow up to the highly successful RAZR franchise and many believe the company simply hung on too long to once popular cellphone. The Moto Q line has been moderately successful for the company. Motorola has garnered a 7% marketshare in the smart phone market, compared to 9% for Palm. In only one year, Apple has managed a 28% market share. The market has become increasingly competitive, with market leaders all planning major device releases later this year. Many expect Motorola will use CTIA Wireless to announce new devices, most notably the Moto Q10.