Long road ahead for Motorola, as it cuts losses

Long road ahead for Motorola, as it cuts losses

Motorola has reduced its quarterly losses but still managed to lose $353m during the last 12 weeks of 2012, parent company Google has revealed.

Sales also fell at the handset manufacturer, down from $1.78bn in its third quarter to $1.51bn in its fourth quarter. However, it reduced its losses from $527m to $353m during the same period.

Google CEO Larry Page said it was still 'early days' for the mobile manufacturer, which was acquired last year in a deal worth $12.5bn. Many have questioned the value of the deal, which was largely seen as a play for the manufacturer's patents. Google signed a deal to sell the Motorola Home set-top box business in December for $2.35bn.

Google's chief financial officer Patrick Pichette said that there is continued work to be done in turning Motorola Mobility around into a fit for purpose business. The business is undergoing a restructure, with a third of its 90 offices planned to be closed and at least 4,000 jobs cut. Google's latest results showed more than a 1,000 jobs were cut at Motorola during its most recent quarter.

Pichette said: 'I just want to remind everybody that we inherited kind of 12 to 18 months of product pipeline that we have to work through and that's the reality of the business, that's kind of overhaul then kind of rebuild the new product pipeline where Dennis's [Woodside, Motorola Mobility CEO] team has kind of been really focused on in addition to the restructuring. It does take time before it shows up.'

Meanwhile, Page said work needed to be done in improving its supply chain for the Nexus devices. Supplies of Nexus 4 have been scarce, with Google blaming manufacturer LG and vice versa.

Page also gave a hint of where he wanted to see handset innovation develop. He said: 'Think about your devices, battery life is a huge issue. You shouldn’t have to worry about constantly recharging your phone. When you drop your phone, it shouldn’t go splat. Everything should be faster and easier.'

Author: Graeme Neill

Written by Mobile Today
Mobile Today

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