Market research firms are debating whether Motorola Inc. is still the number two cell-phone maker behind leader Nokia Oyj. But even if you believe the most positive analysis — such as Gartner Inc.'s new report, which keeps Motorola in second place — it's still clear that number three player Samsung Group is gaining ground.

Gartner reports that Motorola retained its second-place position only by a narrow margin, as its second-quarter market share fell to 14.6% from 21.9% a year ago. By contrast, IDC recently released its own set of numbers showing that Motorola had already fallen to third place. But the company's overall ranking is less important than its staggering — and continuing — fall from grace. Number three Samsung had a 13.4% market share, Gartner details, while number four player Sony Ericsson boosted its share to 9% from 6.6% a  year ago.

Analysts blame CEO Ed Zander (pictured at left) for the company's sustained weakness. Indeed, Zander has been under the gun all year to reverse a failed strategy of focusing  on a few exclusive phone designs and pull back on sales of lower-priced models into emerging markets.

Understanding that virtually all consumer electronics makers endure peaks and slumps and that it takes time to reverse course, most analysts advise investors to give Zander some time to correct past mistakes. The operative word here is "some." Investors don't have infinite patience, and it's been commonly suggested that Zander could be on the outs if he didn't have a new strategy well underway this year. With the Labor Day weekend now just a week away, summer is all but over, and people will be talking about holiday sales in no time. Zander's time is fast running out.

Motorola's continued struggles come as Motorola unveils a new generation smart phone, complete with speakers and an improved keyboard. More new phones will be forthcoming from Motorola. But these new product introductions will be too little too late for Zander. —Andrea Orr 

See Gartner press release
See story on March 5 TheDeal.com on Zander's troubles
See CrunchGear's review of Motorola's new Q phone

Tags: Motorola, corporate restructuring, cellphones, telecom, wireless