Motorola Mobility continued its slide even after being acquired by Google. For the third quarter of this year, Motorola’s earnings report was less than satisfactory. Google thought that Motorola was the key to be competitive in the smartphone race. However, it appears that only Apple and Samsung were profitable in the smartphone industry, leaving other competitors struggling towards profit.
What You Need To Know:
- For the third quarter, Motorola posted an operating loss of $527 million; $505 million is from its mobile unit and $22 million from its home division.
- Motorola’s third quarter loss is far greater compared to last year in which it posted an operating loss of $41 million.
- Total revenue for the quarter has dropped 14% to $2.58 billion.
- Last August, Motorola has announced its intention to cut 4,000 jobs in order to save cost and focus its business to fewer devices.
- Google said that it hired 1,807 workers and cut 2,865 workers from Motorola. Google has spent $349 million in the restructuring and job cuts.
Sources:
Motorola results stink, continue to weigh on Google
CNET
Google’s Motorola Deal Dents Earnings
Wall Street Journal
Google Reports Profit, Sales That Miss Analysts’ Estimates
Bloomberg