Motorola says it will split into two companies next year, as it attempts to revive its flagging mobile phone unit.One business will concentrate on making mobile phones, while the second will make television set-top boxes and other communications equipment.
Investors have been demanding action as Motorola has been losing market share to Nokia and Samsung and shares have fallen 40% over the last year.
But some analysts were disappointed the split would not come until 2009.
"It could be 18 months before it happens, by which time the outlook for either of the businesses could be completely different," said Nomura analyst Richard Windsor.
Motorola's phone unit lost $1.2bn (£0.6bn) in 2007 and sales plummeted 33%.
The company has struggled to find a successor to the successful "Razr" phone.
Analysts say that once divided the mobile phone business might merge, or partner, with a Chinese or Japanese rival.
"I suspect it's a prelude for a joint venture for the mobile devices business," said Tero Kuittinen, an analyst at Avian Securities.
source : http://news.bbc.co.uk/
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