After apple released there i-phone 12 months back they captured 19.5% market share of smart phones. This a big threat for mobile device manufacturers. So motorola is going to spinning of there mobile devices unit to recapture global market leadership and to enhance shareholder value.

Motorola’s market share started dropping because of the existing competition with other device manufactures. In the 4th quarter of 2007 motorola’s device unit produced a loss of 1.2 billion $. It is not affordable for the company, that is why the motorola is now looking for the spinning off to their mobile device unit.

Even though the motorola’s face to public come with the mobiles, they are also the provider of communications tools to business government and the military. Motorola have a success story with Freescale Semiconductor for spinning off. May this move also create another success story for them.