news


Droid Does: Popular Smartphone Gives Motorola First Mobile Profit In Years

Droid Does,” indeed.

For Motorola Inc., that slogan means not just a catchy tagline, but profits. Thats because, for the first time in three years, the equipment maker showed profitability in the mobile devices division, thanks to the Google Android-powered Droid thats proving a sharp competitor to Apples iPhone.

In the third quarter, Motorolas handset unit brought in $2 billion in sales, a 20 percent jump from the same period a year ago. The increase came thanks to the 22 smartphone models Motorola has released this year three of those were designed just for the China market and many of them revolve around the increasingly popular Droid handset. In all, Motorola shipped 3.8 million smartphones in the third quarter.

Much of Motorolas sales came from Verizon Wireless, which is expected to land the Apple iPhone soon. Right now, AT&T Inc. remains the iPhones exclusive carrier in the United States, but when that changes, Motorola could lose some of the ground it has gained. Still, the company seems to be looking ahead its boosting its partnership with AT&T, and has already introduced three new smartphones for that network.

All told, Motorola made $109 million in the three months ended Sept. 30. The figure includes results from the networks business, which Nokia Siemens hopes to buy. Motorola showed $4.9 billion in revenue, a 12.8 percent increase from last year. The enterprise mobility and home businesses contributed most of Motorolas profits.

Shares of Motorola which plans to split in two early next year were trading 3.09 percent higher a little before noon Eastern, reaching $8.34.


Leave a comment

Your email address will not be published. Required fields are marked *

Polls

Which best describes your business?

View Results

Loading ... Loading ...
The ID is: 82373