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Motorola Split – Good News For Android Users

June 22, 2010 - Written By Chris Yackulic

Only a few years ago Motorola sold around 20% of all mobile handsets worldwide. Today that fraction is less than 4%, but that could all be set to change sometime early in 2011 with the long anticipated split of the company into two.

Today, perhaps surprisingly, Motorola generate the bulk of their revenue from devices such as public safety radios and hand held scanners. After the split this branch of the company is to be reborn as ‘Motorola Solutions’.

The other half of the business, and the half that interests us, is to be called ‘Motorola Mobility’ and will encompass their cellphone and set top box divisions.

Even more interesting to Android users is the way the finances of the bifurcation are starting to pan out. Despite losses of nearly $5 billion in the last three years, Motorola recognise the future of the smartphone and are determined not to lose their edge. Not only do they plan to release ‘Mobility’ of most of its financial obligations, such as pensions liabilities, but are prepared pour somewhere between $3 to $4 billion into the company to secure its success.

Judging by Motorola’s previous forays into Android territory, that sounds like pretty good news.