Motorola handset sales fell by 41 per cent in 2009 compared with the previous year.
Motorola received $7.1 billion (£4.4 billion) from handset sales last year, while sales also dropped by 22 per cent in the last quarter of the year to $1.8 billion, compared with the same period in the previous year.
The manufacturer shipped 12 million handsets, of which 2 million were smartphones in more than 20 countries and said it expects to have gained a market share of 3.7 per cent in the handset market last year.
Motorola co-chief executive officer Sanjay Jha said: “We are pleased with the meaningful progress we made in 2009 in further improving our cost structure and strengthening the operations of the mobile devices business.
“Our first Android smartphone devices have been very well received. We look forward to broadening our handset portfolio in 2010 with the launch of at least 20 smartphone devices around the world and continued evolution of our MOTOBLUR service. With an aggressive product and brand strategy and our continued focus on operational efficiency, we are building on our momentum to further improve the financial performance of the mobile devices business.”
Motorola said it expects its share price to fall in the first quarter of this year from $0.01 to $0.03 per share.