Motorola claims best earnings to date

19-10-2005

by The Register

Motorola claimed 19 percent of the worldwide market for mobile phones, its highest share for some years in a booming third quarter.

The company reported record earnings of USD9.42 billion, up from USD7.5 billion in Q3 2004, and net earnings up almost fourfold to USD1.75 billion from a year ago.

Mobile sales accounted for most of the growth. The phone division grossed USD5.6 billion, up 41 percent from last year, and made up almost 60 percent of Motorola's entire business. The company shifted over 38 million mobile devices in the period, gaining a percentage point of share quarter-on-quarter.

The strategy of misspelled brand names that's been so successful with the Razr phone, and less so with the Rokr, looks set to continue. Motorola will unleash the Pebl and the Slvr this autumn.

Networks grew 7 percent year on year grossing USD1.56 billion, and solutions 4 percent to USD1.62 billion. The smallest division, home consumer electronics, grew by 28 percent, earning Motorola USD710 million.

Motorola has been buying back shares and writing off debts, and finished the quarter with USD8.4 billion cash in its war chest.

The Register and its contents are copyright 2004 Situation Publishing. Reprinted with permission.