This isn't new, but news is that Motorola may be shutting down its handset division. It's been reported that Carl Icahn, an activist shareholder, is pressuring it to sell or restructure the bleeding division.

The official word is that they'll go with the latter. And have since cut half their design team in Birmingham by 50%.

Moto has done well several years ago with the launch of the sleek RAZR, but has done little to innovate and adapt to the changing market. Most of its models since have followed the same design language, including the new RAZR2 V9 (pic).

Its User Interface is dated, and remains pretty much unchanged for years. Rivals Nokia, Sony Ericsson, and Samsung for example, have updated their UI several times since. This is extremely damaging as the UI is probably the most important part of the phone as it commands the user experience of the device.

Now both the external and internal designs are dated, and customers are moving to fresher devices.

One consolation though, is that they make decent bluetooth headsets. Their stereo bluetooth headset and flagship MotoPure H12 bluetooth headsets sport sexy curves with the clever use of materials like aluminium. But a phone would require more than that.

It's time for another hit Motorola. It's all or nothing.