BEIJING-The head of Motorola Inc.’s China business, Tim Chen, quit the company to join software giant Microsoft Corp., a move that could impede the progress of one of Motorola’s most important business areas.
Motorola’s Ruey Bin Kao will serve as the company’s interim president until the company can find a replacement. Although China represents one of Motorola’s most notable opportunities, analysts continue to question whether the mobile-phone maker will be able to hold off competition from local Chinese phone makers, as well as a potential supply glut.
“China remains an engine of growth for the company, and in my new role as chairman of MCEL (Motorola China Electronics Limited), I will ensure that our partners, customers and consumers continue to enjoy the benefits that Motorola offers through its products, services and alliances,” said Gene Delaney, who replaces Chen as chairman. Delaney will report directly to Motorola’s head Christopher Galvin.
An interesting side note on Chen’s move to Microsoft is the continuing rumor that Motorola will build a smart phone using Microsoft’s software. Both companies have declined to comment on the rumor.
