Will Motorola Sell Their Handset Business?

While Motorola has done a bit of a nice turnaround under new CEO Ed Zander, some are wondering if now would be a good time to sell their handset business – a market in which many believe Motorola is unlikely to remain a real competitor. With things going well, the theory goes, it may be a good time to exit the business. The more likely scenario, it seems, is that Motorola will basically outsource all of its mobile phone manufacturing to an Asian provider and then slap their brand on the devices. They would still handle the design back home, but not much else. This probably makes the most sense for them. The hardware business is a tough one to be in these days – especially when the competition has a lot lower costs than you do.

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