Moribund Motorola loses CEO
After suffering from a prolonged bout of sliding
sales, cost cuts and collapsing profits, Motorola have
finally parted from top man Ed Zander (pictured) in
a move that many investors will welcome.
Motorola is not purely a mobile phone company, but
handsets account for a large proportion of business.
Motorola's recent successes and failures have mostly
been on the back of the Motorola RAZR design that had
proven to be a costly addiction (see our article "Why
the RAZR is killing Motorola" for a more in-depth
So is Zander to blame for Motorola's moribund performance?
Although our view is that he has hardly been inspiring,
we feel that Motorola's problems are much deeper. As
a technology company, Motorola has interests in all
sorts of computing and communications businesses and
competitors such as Nokia and Sony Ericsson are focussed
very much on mobile handsets. But even that is not the
real problem - LG and Samsung have a huge variety of
consumer and industrial products, and even they manage
to shine brighter than Motorola.
Ed Zander will be replaced by Motorola's Chief Operating
Officer Greg Brown in January. The new CEO will need
to revitalise Motorola with a new range of products
that appeal to consumers and can compete head-on with
We've been waiting for Motorola to get its act together
for a long time. Perhaps this change of leadership will
make Motorola a truly interesting and innovative company