Motorola’s devices business continues to struggle

23 Jan 2008

Motorola, one of the world’s largest mobile phone manufacturers, has reported that 2007 full-year revenues fell from US$42.8bn a year ago to US$36.6bn. The company saw a massive 84pc drop in net profits in the fourth quarter.

For Q4, net sales came in at US$9.6bn, down from US$11.7bn last year, as the company’s mobile devices business continues to struggle.

Sales in the mobile devices division were US$4.8bn, down 38pc on the year. For the full year sales were US$19bn, down 33pc on last year.

This is despite the company introducing nine new phones during the fourth quarter, including the U9 music phone and luxury edition RAZR.

Motorola’s other divisions performed solidly with the Home and Networks Mobility division reporting an 11pc increase in sales to US$2.7bn and the Enterprise Mobility Group reporting a 35pc increase in sales to US$2.1bn.

“We are focused on aggressively rationalising the company’s cost structure and working to get mobile devices back on track,” said Greg Brown, chief executive officer of Motorola.

“The recovery in mobile devices will take longer than expected and there is a lot more work to be done. Our primary focus is on improving profitability and enhancing our product portfolio in this business.

“At the same time, we are very pleased with the continued strong performance of our Home and Networks Mobility and Enterprise Mobility Solutions businesses,” Brown added.

By John Kennedy