Motorola Chief Brown Takes Control of Phone Business
(Bloomberg) -- Motorola Inc., the largest U.S. mobile-phone maker, said Chief Executive Officer Greg Brown took direct control of the handset division after losing sales to Apple Inc. and Samsung Electronics Co.
Brown, 47, replaces Stu Reed, who started running the unit in July, spokeswoman Jennifer Erickson said. Reed will stay with the Schaumburg, Illinois-based company, she said, declining to elaborate further.
Brown, promoted to CEO last month, decided to oversee the unit more closely to help speed its turnaround, Erickson said. Last week, the company said it would examine a sale of the unprofitable unit, which accounts for more than half of revenue, at the urging of billionaire investor Carl Icahn.
Motorola fell 47 cents, or 3.7 percent, to $12.22 at 4:01 p.m. in New York Stock Exchange composite trading. The stock has dropped 24 percent this year.
The handset unit has now posted four straight losses, with last quarter's at $388 million. Motorola has failed to win customers back with its latest handsets, including the Razr2, the sequel to its best-selling model.
source
Brown, 47, replaces Stu Reed, who started running the unit in July, spokeswoman Jennifer Erickson said. Reed will stay with the Schaumburg, Illinois-based company, she said, declining to elaborate further.
Brown, promoted to CEO last month, decided to oversee the unit more closely to help speed its turnaround, Erickson said. Last week, the company said it would examine a sale of the unprofitable unit, which accounts for more than half of revenue, at the urging of billionaire investor Carl Icahn.
Motorola fell 47 cents, or 3.7 percent, to $12.22 at 4:01 p.m. in New York Stock Exchange composite trading. The stock has dropped 24 percent this year.
The handset unit has now posted four straight losses, with last quarter's at $388 million. Motorola has failed to win customers back with its latest handsets, including the Razr2, the sequel to its best-selling model.
source
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