• The New York Times, Thursday, March 27, 2008 11:47 AM

Conceding that the main problem facing Motorola's unprofitable mobile phone unit is its inability to come up with new products to replace the highly successful Razr, CEO Gregory Q. Brown says that the company will split itself into two separate publicly traded entities. The Razr was once a must-have phone, but has faded from the scene. Motorola's influence and stock price have declined as rivals have taken the lead in creating interesting devices. Apple and its popular iPhone, for example, have captured the attention of buyers in the high-end market.

Brown says he hopes that by turning the mobile devices business into its own unit, the company will have better luck attracting a CEO to run it and reviving Motorola's reputation. Motorola expects to have the spin-off completed by 2009. The profitable side of Motorola makes set-top boxes and products used by businesses and law enforcement officials for scanning and fingerprinting, as well as data and video communications systems for public agencies like fire departments.

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