In an effort to cut costs and boost margins, Motorola will reportedly use its Linux/Java based mobile phone operating system across “all mid- and high-tier devices.” The beleaguered communications company will fall $1 billion short of analyst expectations this quarter, due to a slump in its mobile phone business.

According to a report at the Chicago-area Daily Herald, Motorola CEO Ed Zander blamed poor earnings on lower unit volumes and greater-than-expected global price competition, particularly in India, Africa, and South Asia.

Speaking with investors yesterday, Zander reportedly confirmed what Motorola told PC Magazine in July — that it will abandon its proprietary “P2K” RTOS, used in U.S. models such as the Razr, Krazr, and so on. Going forward, the company will adopt a more cost-competitive strategy, simplify its product platforms, and introduce new feature-rich products, Zander reportedly said.

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