Feeds

Motorola discovers cheaper phones lead to lower profits

Slips to number three in phone rankings

Internet Security Threat Report 2014

Motorola has announced its second loss-making quarter, pushing the beleaguered manufacturer into third place behind Nokia and Samsung.

Motorola made a loss of $28m this quarter, compared to a $1.38bn profit in the same period last year.

Handset sales slipped 30 per cent, and income from sales of handsets dropped 40 per cent, reflecting the limited range Motorola is offering at the moment and its targeting of the cheaper end of the market.

In the US, where Motorola sells more than a third of its handsets, all eyes have been on the iPhone and competing devices, of which Motorola still has none.

But cost-cutting measures should turn the situation around, chief financial officer Tom Meredith said: "In addition to cost controls and headcount reductions, which we expect will result in cost savings of $1bn in 2008, we intend to significantly improve our cash conversion cycle and our return on invested capital".

A few new handsets probably wouldn't hurt either. ®

Business security measures using SSL

More from The Register

next story
Brit telcos warn Scots that voting Yes could lead to HEFTY bills
BT and Co: Independence vote likely to mean 'increased costs'
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
New 'Cosmos' browser surfs the net by TXT alone
No data plan? No WiFi? No worries ... except sluggish download speed
Radio hams can encrypt, in emergencies, says Ofcom
Consultation promises new spectrum and hints at relaxed licence conditions
Blockbuster book lays out the first 20 years of the Smartphone Wars
Symbian's David Wood bares all. Not for the faint hearted
Bonking with Apple has POUNDED mobe operators' wallets
... into submission. Weve squeals, ditches payment plans
This flashlight app requires: Your contacts list, identity, access to your camera...
Who us, dodgy? Vast majority of mobile apps fail privacy test
prev story

Whitepapers

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Security and trust: The backbone of doing business over the internet
Explores the current state of website security and the contributions Symantec is making to help organizations protect critical data and build trust with customers.