Motorola mobile division expects first quarter loss

Dec 02, 2010
The new Motorola i1 smartphone is displayed at the International CTIA Wireless 2010 convention at the Las Vegas Convention Center in March 2010. US handset maker Motorola said it expects to ring up another loss in its mobile phone division next quarter.

US handset maker Motorola said Wednesday it expects to ring up another loss in its mobile phone division next quarter.

"We expect a loss in in Q1," Motorola co-chief executive Sanjay Jha told financial analysts, although he said he expected it would be "significantly improved from a year ago."

As for the current quarter, Jha said it is "proceeding quite well."

Motorola's mobile phone division reported a 20-percent increase in revenue to two billion dollars last quarter and an operating loss of 43 million dollars compared with an operating loss of 216 million dollars a year ago.

Motorola Mobility, the mobile phone division, is to be spun off from the rest of the company on January 4.

Motorola Mobility will focus on the media, mobility, Internet and computing markets while Motorola Solutions will target next-generation communications solutions to government, public safety and enterprise customers.

Jha said tablet computers such as Apple's popular will present "a very important growth opportunity for us."

"There's a race to the bottom for some players," he said. "You will not see us participate in this race to the bottom."

Jha said investment in building the Motorola brand in Europe was not a priority right now. "I'm slowly building my base in Europe," he said. "I need to get to a much better position financially before I contemplate that."

Motorola enjoyed success with its popular Razr phone launched in 2005 but has been losing ground since to Apple, Canada's , maker of the Blackberry, and other major cell phone manufacturers.

Jha has been counting on smartphones running to help turn around the company's flagging fortunes and Motorola has launched around two dozen Android-based devices this year.

Explore further: Samsung removes logo on smartphones in Japan

Related Stories

Motorola says separation on track

Jul 01, 2010

Motorola said Thursday it was on track to split into two separate companies next year, one focusing on handsets and the other on professional safety equipment.

Motorola posts profit, strong sales; stock jumps

Apr 29, 2010

(AP) -- Motorola Inc. posted an unexpected profit in the first quarter, as sales of its new phones outdid its own forecasts. It also gave an outlook that was brighter than Wall Street was predicting, and ...

Recommended for you

Taiwan factory workers win $18 mn over cancer deaths

21 hours ago

Workers from a factory in Taiwan which leeched toxic chemicals they say resulted in 200 deaths from cancer and more than 1,000 other cases of the disease won a Tw$564.45 million ($18 million) payout from US electronics company ...

Court monitor: Apple antitrust cooperation has 'declined'

Apr 17, 2015

Apple Inc.'s cooperation with efforts to improve its compliance with antitrust laws after a federal judge concluded it colluded with electronic book publishers to raise prices five years ago took on an "adversarial tone" ...

SEC questions LA Unified on use of bonds for iPad project

Apr 17, 2015

The Securities and Exchange Commission recently questioned Los Angeles Unified School District officials as part of informal inquiry into whether they properly used bond funds for a beleaguered $1.3 billion project to provide ...

User comments : 0

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.