Motorola's networks division (called the Personal Communication Section (PCS), prior to 2004) pioneered the "flip phone" with the StarTAC in the mid-1990s. By the turn of the 21st Century, it produced another innovative hit product, the (original) RAZR—an ultra-thin flip phone. Motorola had a commanding lead in the analog cellphone market

Motorola Mobility Holdings, Inc. (NYSE: MMI)—formerly the Mobile Devices division of Motorola Inc. until January 2011—is a communications corporation headquartered in the Chicago suburb of Libertyville, Illinois. Motorola's networks division (called the Personal Communication Section (PCS), prior to 2004) pioneered the "flip phone" with the StarTAC in the mid-1990s. By the turn of the 21st Century, it produced another innovative hit product, the (original) RAZR—an ultra-thin flip phone. Motorola had a commanding lead in the analog cellphone market, but it was slow to embrace digital technology. This allowed global rivals such as Nokia and Samsung Electronics to bypass it; it essentially failed to enter the global smart phone market until the 2010s.

Motorola continued to experience severe problems with its cellphone/handset division in the latter-2000s, recording a record $1.2 billion loss in Q4 2007. Its global competitiveness continued to decline: from 18.4% market share in 2007, to 9.7% by 2008. By 2010, Motorola's global market share had dropped to seventh place, leading to speculation of bankruptcy of the company.