Motorola handset sales down 22pc


Motorola reported Q2 sales of $8.1 billion across all its businesses.

Handset sales for the quarter to June 30 were $3.3 billion, down 22 per cent compared to the same quarter a year ago.

Its handset division reported losses of $346 million, compared to an operating loss of $332 million in Q2 2007.

Motorola shipped 28.1 million handsets during the quarter. It said it launched 10 new products to key markets around the globe.

In Q2, its home and networks mobility sales grew seven per cent on the same quarter in 2007, to $2.7 billion. Operating earnings for the unit increased 28 per cent, to $245 million.

As it stands, home and networks mobility mixes cable set-top box manufacturing with cable infrastructure and network gear to carry voice and data signals.

Motorola said last week it is to divide its ‘home and networks mobility’ business into three separate units "to capitalize on the opportunities created by changes in the global marketplace".

The new units will comprise broadband home solutions, broadband access solutions and cellular networks.

Motorola has already revealed plans to hive off its ailing handset business from its home and networks mobility division next year.

Last month, it said it was also to divide its home and networks mobility business into three, comprising

Motorola president and chief executive Greg Brown said:

"Motorola’s Home and Networks Mobility and Enterprise Mobility Solutions segments delivered strong results in the second quarter, driven by sales growth and operating margin expansion.

"These segments are well positioned to continue generating year-over-year sales and margin growth during the second half.

"In the Mobile Devices segment, we launched ten new products and maintained market share, compared with the first quarter, while continuing to invest in our product portfolio.

"We also made progress on our plans to separate Motorola into two independent, publicly traded companies, generated positive operating cash flow and reduced our cost structure."