Inder Singh, an analyst at Lehman Brothers, wrote the following in a note distributed to clients this morning:
We believe the re-organization of Motorola's operating structure is likely to cause some internal disruption within Motorola's businesses, at least while key operating questions are addressed pending the spin-out (brand name, supply-chain rationalization, product roadmaps, and the finalization of new leadership for the business units, among others). Importantly, the business break-up will not happen overnight, and is expected to occur in 2009. In our view, this may create an opportunity (over the next 3 or 4 quarters) for Cisco to take incremental market share in the set-top box market.
Of course, Moto probably won't be as mixed up as Cisco will make it sound. And the breakup does give Moto a better shot at exploiting all the opportunities in the 4G equipment market. But that's the beauty of marketing, isn't it? The perception Cisco creates could become the reality of Moto's customers.
– Phil Harvey, The Editor, Light Reading