Motorola’s mobile division generates loss but fares better than last year.
Motorola has posted their Q1 2010 earnings yesterday. Q1 2010 started off well for the communication hardware giant, posting a profit of $69 million or 3 cents per share, a figure much pleasant than the $203 million loss or 10 cents per share posted in the same quarter last year. Net sales reached $5.04 billion, down 6% from the $5.37 billion posted in Q1 2009. Despite the slip, Motorola is doing well with its stock currently trading at $7.20 per share, up 4%.
Motorola’s mobile division, however, is not doing too well though the outlook is positive. Mobile sales reached $1.6 billion, down 9% YoY and the division posted a loss of $192 million, significantly lower than the $545 million loss posted in Q1 2009. Motorola shipped 8.5 million units in Q1 2010, of which 2.3 million were smartphones, a figure that exceeded analyst’s expectations of 1.8 million.
Motorola plan to ship 20 total handsets by the end of the year, with 12-14 million units per quarter. The company says it has no interest in developing its own mobile OS and is much please Google’s pace of innovation with the Android platform and believes the search giant has the infrastructure to keep the platform and fresh and competitive.