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...cost of that failure? By 2008, market value had 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...

Author: /time Magazine | Title: Motorola's Binary Code | 4/12/2010 | See Source »

...Enter Jha, a former Qualcomm executive who had become a rock star in industry circles. Hired in 2008, Jha was enticed to Motorola with $100 million in performance-contingent bonuses and stock options, making him one of the highest paid U.S. executives that year. "Motorola's [board] had to decide - shut down the business, or find one of the very few people both capable and willing to turn things around," says Avian Securities analyst Matt Thornton. "Someone of Sanjay's caliber had to have incentives to take this...

Author: /time Magazine | Title: Motorola's Binary Code | 4/12/2010 | See Source »

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...

Author: /time Magazine | Title: Motorola's Binary Code | 4/12/2010 | See Source »

...Hitching Motorola to one horse - even if it's Google - was a risky but necessary move, as the market-leading iPhone taught consumers to increasingly demand usability in addition to cool hardware, Motorola's traditional specialty. "Software is the star now," says Carolina Milanesi, a Gartner analyst. "The choice of Android was one Motorola couldn't postpone without risking falling further behind or never recovering...

Author: /time Magazine | Title: Motorola's Binary Code | 4/12/2010 | See Source »

...last year, Motorola emerged as one of the largest shippers of smart phones. That's largely due to Droid, its newest offering for Verizon Wireless. Motorola has also made headway with Cliq, its T-Mobile phone, and early in March it launched BackFlip, the first Android phone for AT&T. About 40% of wireless customers now use smart phones, according to Web research firm Crowd Science, and that portion is growing rapidly. To complement Android, Motorola developed Motoblur, one of the first user interfaces to unite social-networking tools such as Facebook, Twitter and MySpace. "We fundamentally changed our focus...

Author: /time Magazine | Title: Motorola's Binary Code | 4/12/2010 | See Source »

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