US company divides in two in order to focus on regaining handset market share
Motorola Mobility and Motorola Solutions formally began trading separately today (January 4) on the New York Stock Exchange in a move that has been planned for over two years.
Under the agreement, Motorola Mobility owns the Motorola brand but licenses it to Motorola Solutions.
Motorola Mobility will concentrate on winning back its share of the handset market, which it has lost since the emergence of the Apple iPhone. It said it will also leverage the capabilities of its ‘Home’ business to cement itself in the market.
Motorola Mobility chief executive Sanjay Jha (pictured) said: “After more than two years of planning, today we begin operating as a financially strong, independent company trading on the New York Stock Exchange.
“We are well-positioned to build on the strong momentum we have in smartphones and end-to-end video solutions –and to take advantage of opportunities resulting from the convergence of media, mobility, computing and the Internet.”
“With more than 20,000 employees globally, 24,500 patents granted and pending, and a highly recognizable brand, we are able to deliver cutting-edge devices with differentiated software experiences.
“In addition, we will continue to work aggressively to capitalize on the next generation of converged devices and experiences to provide consumers with more intuitive and personalized services.”
In 2010 Motorola’s mobile device business launched 23 smartphones including the Defy and the Milestone.
Motorola Solutions meanwhile will continue to focus on it products which include public safety solutions, mobile computing technology and advanced data capture.
Motorola Solutions president and chief executive Greg Brown said: “With a purpose-driven brand and a strong balance sheet, we are very well positioned for the future.
“Motorola Solutions has an outstanding platform to build from and I believe our opportunities for growth will benefit customers, shareholders and employees.”