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New Motorola unit to go with two tablet sizes, 4G devices in 2011

by Howard Wolinsky

Motorola (MOT) in its new form, to be known as Motorola Mobility, will go the way of Acer (2353.TW), rather than Apple (AAPL) in releasing new tablets in 2011.

Apple founder Steve Jobs has jabbed at 7-inch screens, emphasizing the nearly 10 inches on iPad. Several others have said they are going with 7-inchers. But Taiwan-based Acer said last month it will offer both 10.1- and 7-inch touchscreen displays.

Motorola Mobility will follow Acer.

Current co-CEO Sanjay Jha, who will lead Motorola Mobility, told a banking conference, according to ChicagoBreakingBusiness: “We’re planning to participate quite fully in (the tablet) category...” Motorola Mobility will specialize in mobile devices and set-top boxes,

He said Moto’s research shows 10-inch tabs are for business and 7-inch tabs are “fun” devices more easily carried by consumers.

Ubergizmo quoted Jha about Motorola releasing 4G phones in 2011.

Ubergizmo said Jha hinted a new “competitive dynamic” will disrupt Motorola's relationship with Verizon (VZ) in the first quarter that will have a significant negative impact on Motorola. “Whether the comment is an indirect reference to Verizon Wireless getting an iPhone or an official 3G/4G-capable iPad that's compatible with the carrier's network out of the box is unclear. To combat the threat, Motorola will continue to focus on the mid- to high-tier smartphone market.”

Schaumburg, IL.-based Motorola, which pioneered the mobile phone and is now benefiting from its smartphone Droid with Google's (GOOG) Android OS, will spin-off Motorola Mobility on Jan. 4 as it creates two publicly traded companies. The rest of Motorola, which sells tech to government and corporations, will become Motorola Solutions and trade on the New York Stock Exchange as MSI.

Meanwhile, the new Motorola Mobility, which will trade on NYSE as MMI, said next year it will offer another new device with mobile capabilities. Reuters reported that this new device will combine set-top boxes and cell phone technology. The device will be featured in January at the Consumer Electronics Show.

Daniel Moloney, president of Motorola Mobility, says the technology will allow consumers to view any content anywhere on different devices.

"It's one consumer proposition that will come sooner rather than later," he told the Reuters Global Media Summit on Wednesday.

After being sold a separate gadget offered via service providers, the home streaming product will eventually be integrated into set-top boxes, he told the news service.

Moloney rejoined Motorola last summer, having served as president and chief executive officer of Technitrol, an electronic component manufacturer. He previously was executive vice president at Motorola Inc. and president of Motorola’s Home and Networks Mobility business, which evolved into Motorola Mobility. Moloney then worked with video and WiMax.