Motorola’s travails illustrate the risks for a company that rides high with a big consumer hit. Amid its success with the Razr, it fell behind on developing a phone with the next generation of technology. Missing a beat is especially hazardous in cellphones, where it can take two to three years to develop a new line.
Meanwhile, Motorola faced corporate infighting during the transition to a new CEO from outside the industry, which interrupted new-product development. Mr. Zander has also struggled to bring his Silicon Valley ways, developed from years in the computer business, to the cellphone world.