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Motorola remains America's leading manufacturer of
electronics communications products but it has to some extent lost its way since 1995. Long established as a pioneer in
radio telecommunications, the company was a leading light in the development of cellular phone systems in the 1980s. During
the following decade, however, Motorola saw its command of this high-profile sector whittled away as it failed to make a
smooth upgrade from analogue to digital technology. Instead, its much-vaunted Iridium satellite communications system turned
out to be an expensive and embarrassing flop. A change of direction (and management) began to deliver results from 2004,
especially after a move towards more stylish handset designs, such as the Razr. But in 2007 the company suffered a new and
even more prolonged slump. Once the global leader in mobile phones with a 50% market share, the company had slipped into the
#5 place worldwide by the end of 2008. The group has announced plans to split into two separate companies, probably in 2010.
One business will focus exclusively on handsets; the other on network systems and set-top boxes.
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Competitors: See Consumer Electronics index for other companies.
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