Motorola preparing to blast its way back into handset business in 2010

31 Jul 2009

Having gone from being one of the top handset makers in the world with leading devices like the RAZR to being non-existent in a market dominated by iPhones and BlackBerrys, it seems Motorola is preparing a range of smart phone devices in time for Christmas as well as a portfolio of devices that will help it regain its crown in 2010.

The company, after three straight quarters of losses, has recorded a modest profit of US$26m on revenues of US$5.5bn.

Motorola’s co-CEO and mobile device whizz-kid Sanjay Jha says that the company has been working with carriers to bring its next generation smart phone gadgets to market. He said earlier this year that the company will be bringing out a new generation of Google Android-powered devices that will make Motorola a relevant player again.

“We have agreements in place with carriers and remain on track to bring our new smart phone devices to market for the holiday selling season,” Jha said.

“We are also excited about our 2010 portfolio and are pleased with the customer feedback. In Mobile Devices, we improved the operating loss, reflecting a lower cost structure, and substantially reduced cash consumption as compared to the first quarter.”

The company has increased its cost reduction plan by US$100 million and now expects total cost savings of US$1.8bn for 2009.

Motorola’s Home and Networks Mobility division recorded sales of US $2.0bn with operating profits of $153 million

The Mobile Devices division recorded sales of US $1.8bn, shipped 14.8 million handsets but sustained an operating loss of US$253m.

 “In Broadband Mobility Solutions, we continued to lead in our key markets and delivered solid results in a very challenging economic environment,” Greg Brown, co-CEO of Motorola and CEO of Broadband Mobility Solutions said.

“We further reduced our cost structure, improved our operating margins and decreased inventory on a sequential basis. We also continued to focus our R&D efforts on innovation in areas such as next-generation public safety, enterprise mobile computing, enhanced broadband video and 4G wireless,” said Brown.

By John Kennedy

John Kennedy is a journalist who served as editor of Silicon Republic for 17 years