Motorola has reported an unexpected third-quarter quarterly profit for the year mainly as a result of its aggressive cost cutting. However, the manufacturer is still struggling in its mobile phone division with continuously declining sales.
Motorola posted a profit of $12 million for the three-month quarter ended October 3, compared with the $397 million loss in the same quarter a year ago. This was the second straight quarter of earnings after months of heavy losses.
The company’s performance as a whole has been improving, but its mobile device unit is not looking good. For the third quarter, although it managed to narrow its operating loss from $840 million to $183 million, cell phone sales only totaled $1.7 billion, significantly down 46 percent from the year-ago quarter. 13.6 million handsets were shipped during the period, compared with 14.8 million in Q2 and 25.4 million a year ago. Given that Sony Ericsson has sold 14.1 million devices, Motorola is now probably the fifth handset maker in the world with less than 5 percent of global market share.
While its cell phone share continues to shrink, the company is pinning its faith on new smartphones powered by Google’s Android operating system. Two of them, the Motorola CLIQ from T-Mobile USA and the Motorola DROID from Verizon Wireless, have arrived on the U.S. market to meet the coming holiday season demand.
"The introductions of our new products powered by Android are important milestones as we begin to address the mobilization of the Internet and the growing demand for modern smartphones," said Motorola’s co-CEO Sanjay Jha in a statement. "Next year, we will continue to expand our smartphone portfolio and deliver improved financial results."
Jha also added Motorola plans to release more than twenty new smartphones in 2010, with a majority of them running the Android software. Despite its historical support of Windows Mobile and other enterprise phones, the company will put more focus on developing handsets targeting at consumers, prosumers and social messaging users. As these market categories are growing much faster than the corporate market, it seems that this time Motorola is on the right track to turn its fortune around.
Tags: Motorola Accessories, Motorola DROID Accessories, Motorola CLIQ Accessories, Sony Ericsson Accessories, T-Mobile Accessories, Verizon Wireless Accessories
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