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Motorola CEO Talks About Phone Division; Sees People, Products And Software Leading Recovery

During Greg Brown’s first formal investor conference since he took control of Motorola (NYSE: MOT), the CEO addressed questions about the troubled handset division head-on, and came off sounding very dedicated to the division while still acknowledging how much work has to be done.

Brown, who was speaking at the Morgan Stanley Technology Conference in Dana Point, CA, said the benefit to being public about exploring strategic alternatives for the division was so that new partnerships or talent opportunities could more easily present themselves. In February, the shake-out continued when Stu Reed was asked to step aside as the division’s leader. Since then, Brown said he is spending about 80 percent of his time on the division, and that Motorola has launched a formal talent search to replace Reed, who is still at the company.

On a recovery: He said it will be a product-led recovery. They’ll have to produce a larger array of products, including ones at different price points, ones for different geographies, and more devices for North America that support 3G and multimedia services. “Motorola has been more hit-oriented than broad-based portfolio, and we intend to change that,” Brown said. “Don’t get me wrong, we like hit products-iconic devices, but we’d like to lower the collective breakeven… and compete with a more sustainable business.”

On fending off Nokia (NYSE: NOK) in North America: He sees competition only escalating in North America for the rest of the year and going into 2009. “I think we have to leverage the incumbency we have. We have a strong position in the Americas, and we can’t take any for granted. I’m acutely attentive to the existing relationships we have,” he said.

On software platforms: He said in the next few months, Motorola will be refining its software strategy. It currently supports quite an array. It has its own proprietary in-house software; Windows Mobile for enterprise, a Java/Linux in-house solution; Google Open Handset Alliance; Brew; and UIQ/Symbian. Out of all of those, Brown called out the company’s investments in two—Linux and Google (NSDQ: GOOG). “We spend a modest amount on the Android side, and we have to ultimately take a look at Linux. It’s important, but we have to take a look.”

For more coverage: The Chicago Tribune’s take on finding a handset division leader. Dow Jones covered Motorola’s stance on the economy.

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Mar 3, 2008 4:32 PM ET

Posted In: Gadgets, Companies, Motorola, greg brown

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Comments (1)

Mar 3, 2008 10:52 PM

Motorola phones actually have better look and design than nokia, samsung, and sony ericsson. But they lose out in features. While WIFI, GPS, hi res camera, and other interesting software, ring tones are all over other phones, a few stone heads in Motorola (like the ex-CTO) are still stubbornly insisting these are not what consumers want. Hopefully Greg Brown sees these, and take actions quickly.

gatjok

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