Word: handsetting
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Motorola's dire straits required a dramatic reinvention. So over the course of 2008, it slashed costs, replaced nearly 70% of its senior executives, transformed its corporate culture and hired Sanjay Jha, Brown's co-CEO, to resurrect its handset segment. Then it took the turnaround one step further, announcing plans in February to split the corporation into two independent entities...
After two difficult years - in 2009, the mobile market declined for the first time since 2001 - the handset industry appears to be on its feet again, according to research firm Gartner Technology, with sales stabilizing at 340 million units sold in last year's fourth quarter. Some analysts expect the worldwide mobile-subscriber base to almost double...
...fallen by more than $37 billion in less than 18 months, and in 2009, Motorola's market share was halved from the prior year. Motorola fell from the No. 2 mobile manufacturer globally to barely eking out a spot in the top five, leading some to suggest that the handset unit should close shop. Investors, including billionaire activist shareholder Carl Icahn, began agitating for Motorola's breakup...
That investment is showing some positive signs. Handset sales began slowly improving in late 2009 as Jha set about changing Motorola's 9-to-5 corporate culture and wooed top talent away from competitors. He scrapped much of the 2009 product portfolio in favor of new smart-phone offerings, all running Google's Android operating platform. (Get the latest gadget news and reviews at Techland.com...
...itself shut out of the world's largest Internet market. Its partners are already minimizing any damage by association. Tom.com, a hugely popular portal, is no longer powering its search engine with Google, and China's two largest cell-phone companies are expected to tear up mobile-Internet and handset deals. Advertisers who have paid to reach the desirable demographic catered to by Google.cn - college graduates and professionals - are already feeling bereft. Soon, so will suppliers of music and video content to Google's Chinese service...