Design Duds Dent Motorola

Investors and mobile phone industry analysts say Motorola's design woes and product development deficiencies will look even more glaring when Apple's (AAPL Quote) hotly anticipated iPhone hits the market in June.

When Zander first came to Motorola and set the goal of unseating Nokia (NOK Quote) as the top phone maker, some took it as a bad sign.

"If you are in the business of trying to gain market share, it means you have admitted you are pushing a commodity," says the buy-side analyst, who is long Apple. "What you should be doing is developing the right products that get people to pay for them."