Moto to Split Off Its Handset Business

I’ve written plenty in the past about Motorola’s long-running problems; the latest in the saga is that the company has decided to split off its handset business into a standalone company in an attempt to reverse its fortunes.

This is a financial “solution” that should give the company’s sagging share price a boost, but in and of itself, it won’t do anything to help its handset business. The fundamental problems of a poor cost structure, and, more importantly, a weak handset portfolio remain. Until the product line improves significantly, it’s hard to see much changing — whether the business is a part of, or separate from, the rest of Motorola.

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