Motorola chief Greg Brown has defended the manufacturer’s state of health, and said he expects the business to improve in the second quarter.
Brown told the Financial Times that the company’s mobile devices unit should report a reduced operating loss in the second quarter of this year. He said the unit would not be shut or combined with a rival.
Last month, Motorola reported a 51% fall in phone sales, as it slid to the number five position in the handset manufacturer market.
The manufacturer’s market share slipped from 18.4% in Q4 2007 to 6.4% in the fourth quarter ended December 31 2008. It shipped 19.2 million handsets in the quarter, down from 40.9 million in the last quarter of 2007.
The company reported a net loss of $3.6bn (£2.5bn) for the fourth quarter and revenues fell to $7.14bn (£4.9bn) from $9.65bn (£6.7bn).
Motorola is planning to reduce its operating expenses by $1.5bn this year. Last month, it unveiled a strategy based on making smartphones using the Google Android operating system.