Motorola pins hopes on the mobilisation of the internet

29 Oct 2009

Motorola, having scraped through with a small third-quarter profit, is pinning its hopes for the coming quarter on two new Android devices and the revolution that is the mobilisation of the internet.

Motorola posted a small profit from operations of US$12 million during the quarter on revenues of US$5.5 billion. The company ended the quarter with total cash of US$7.2 billion, up from US$700 million at the end of the second quarter.

“We delivered on our commitment to improve the financial performance of Mobile Devices and to commercially launch two smart phones in time for the fourth-quarter holiday season,” Sanjay Jha, co-CEO of Motorola and CEO of Mobile Devices, said.

“The introductions of our new products powered by Android are important milestones as we begin to address the mobilisation of the internet and the growing demand for modern smart phones. Next year, we will continue to expand our smart-phone portfolio and deliver improved financial results,” Jha said.

Handset shipments

Mobile Devices segment sales were US$1.7 billion, down 46pc compared to the year-ago quarter. The company shipped 13.6 million handsets and today has a 4.7pc global handset marketshare.

The company announced two new Android-powered smart phones: the CLIQ & DEXT, a 3G device with social media apps like Facebook, Twitter and LastFM included; and the DROID, it’s challenger to the Apple iPhone that comes with a slide-out keyboard and a 3.7-inch screen.

Home and Networks Mobility segment sales were US$2 billion, down 15pc compared to last year, while Enterprise Mobility Solutions reported sales of US$1.8 billion, down 13pc on last year.

Looking ahead

The company’s outlook for fourth-quarter earnings from continuing operations is US$0.07 to US$0.09 per share.

Greg Brown, co-CEO of Motorola and CEO of Broadband Mobility Solutions, said: “Broadband Mobility Solutions performed well during the quarter. We continued to manage our cost structure and also delivered solid operating margins.

“We secured additional contract wins and launched new devices, including the MC9500, the industry’s most rugged mobile computer. As the economic environment improves, we believe our businesses are well positioned for continued success,” Brown said.

By John Kennedy

Photo: Motorola’s DROID, one of two Android-powered smart phones the company has recently launched.

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