Motorola handset business to 'break even' in 2010

Motorola handset business to 'break even' in 2010

Motorola expects its handset business to break even next year, driven by the launch of a portfolio of new smartphones.

The news came on the back of a strong set of  Q3 results released today

The company's beleaguered handset division is predicting higher Q4 sales, powered by its new smartphone range.

"We expect to deliver significantly better financial results in 2010," said Motorola’s co-CEO Sanjay Jha, speaking at the results.

"I'll be surprised if I don't break even in at least one quarter in 2010," he added.

Jha also revealed plans to launch more smartphones. He said: 'In 2010 we will launch a variety of new devices as we expand our portfolio to address [different] product tiers and carriers."

He added that a majority of its smartphones next year will feature its MotoBlur user interface.

Motorola’s mobile devices division revealed sales of $1.7bn in Q4, down 46% on-year, but reduced its operating loss to $183m from $840m in the same quarter in 2008 and from $25m in Q2 this year.

Device shipments were down to 13.6m during the quarter, estimated as a global market share of 4.7%, compared with 25.4m a year ago; that figure was itself down 32% on the 2007 number.

However Motorola sees its Dext handset and the launch of its Droid device yesterday - both on Android operating systems – in time for the Q4 holiday period, as key components in the company's fight back.

Jha said the devices and the Android OS were ‘the first steps towards positioning ourselves to address the mobilisation of the Internet and greater demand for modern smartphones.’

He added that he expects ‘Q4 sales to be sequentially higher,’ clarifying that while unit sales will be lower; this will be offset by sales of the new smartphones.

Motorola is also planning to drive down the price of its smartphones in a bid to increase market penetration. Jha said eventually he wants to see wholesale prices of smartphones as low as $200.

Motorola shares rose 6.2% to $8.45 in pre-market trading.

Written by Mobile Today
Mobile Today

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