Motorola surprises Wall Street with profit

FAQs

1. What was the cause of Motorola’s profit in the second quarter of 2008?

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   • Cost-cutting and strong performance from non-handset divisions.

2. How much revenue did Motorola generate in the second quarter of 2008?

   You are watching: Motorola surprises Wall Street with profit

   • $8.08 billion.

3. Which divisions drove Motorola’s strong sales for the quarter?

   • Home and Networks Mobility ($2.7 billion) and Enterprise Mobility ($2.0 billion).

4. How much loss did Motorola’s handset business report in the second quarter of 2008?

   • $340 million.

5. What helped Motorola maintain its No. 3 position in the global handset market?

   • Stronger sales in North America due to low-cost 3G handsets.

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   How many Razr phones did Motorola sell in the second quarter of 2008?

   • 3 million Razrs and 1 million Razr2s.

7. Despite the release of the iPhone, how many Rokr music-playing phones did Motorola sell?

   • 1 million.

8. What percentage of Motorola’s shipped devices during the quarter were to the North American market?

   • 48%.

9. What is Motorola planning to release for the holiday season?

   • New handsets with touch screens and smartphone capabilities.

10. When is Motorola expected to complete the split of its handset division?

    • Third quarter of 2009.

11. What did Motorola announce earlier in the week regarding its Home and Networks Mobility unit?

    • Plans to divide it into three distinct businesses (cable, cellular, and broadband).

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    What is the potential outcome of Motorola dividing its Home and Networks Mobility unit?

    • Sale of each business individually.

Summary

Motorola reported a surprising profit in the second quarter of 2008, driven by cost-cutting and strong sales from non-handset divisions. Despite the lack of new, cutting-edge phones, Motorola managed to maintain its No. 3 position in the global handset market, primarily due to stronger sales in North America. However, the company acknowledged that sales are expected to decline in the third quarter due to ongoing market share loss abroad.

Motorola plans to release new touch screen and smartphone-capable handsets for the holiday season in an effort to revive sales. The company is also preparing to spin off its handset division and may sell off some of its remaining businesses.

Overall, Motorola’s performance in the second quarter of 2008 showed signs of improvement, but challenges remain, particularly in the handset market. The company’s plans to release new products and spin off its handset division may provide opportunities for growth in the future.

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Source: https://anytimesoftcare.com
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