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Motorola Lost $80 Million Last Quarter

Sites include . Published on February 5th, 2012. Written by Anthony West.

Remember when it seemed Motorola was the only mobile-phone manufacturer in town? Those were certainly the glory days—everyone wanted a ‘Razor’ and even the initial incarnation of Droid phones made the ubiquitous “hello Moto” chime a star.

These days though, Motorola is a shadow of its former self and the company can’t seem for the sake of  its own life make a profit. The company released its Q4 numbers recently and it made for fro very depressing reading. Revenues for Q4 2011 were a paltry $3.4 billion, and this ensured that the company would make a loss which came in at $80 million. The biggest reason things worked out so badly in 2011 for Motorola was the inability of the Mobile Services Division to carry its own weight. Operating income in that division was $2.5 billion, and accounted for just over $70 billion of the total losses incurred for the quarter.

These week numbers are obviously due to the growth of the competition because Apple and Samsung have had record sales in 2011. Motorola’s struggle to keep up meant it only shipped a total of 10.5 million handsets in Q4 of 2011 and a paltry 42.2 million handsets for the entire year. Clearly such low numbers would translate into nothing positive for Motorola; which raises the question of whether Google will be able to transform the fortunes of the company once the acquisition deal is approved by regulators. We’ll just have to wait and see, I suppose.

Is Motorola done as a mobile phone manufacturing giant? Let us know below.

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