Android Helps Motorola Go Into Black

October 29th, 2010 at 10:03 am

Mobile phone manufacturer Motorola has been struggling in recent years, mainly due to the influx of more competitors in the mobile phone market. The company has found their in the red since 2006. But recent financial reports posted for the 3rd quarter of this year show that the company finally is back into black after so many years, thanks to sales of its Android smartphones.

The US based mobile phone maker recently reported its first year over year revenue growth since 2006. The company reported revenue amounting to $5.8 billion and reaching earnings of $109 million for the third quarter of 2010. A good reason for this fortunate turn of events for Motorola may greatly be attributed to the sales of its Android smart phones.

This unit of Motorola’s business generated $3million in operating profit for the third quarter from the sales of 3.8 million smart phones running on the Android OS in 2010. this is quite an improvement considering that Motorola posted a loss of $183 million in the same period last year. Motorola have considered the risk of focusing on building smart phones running on the Google Android OS. And so far, that risk seems to be paying off. It has certainly improved their overall business by getting back into profitability after 4 years in the red.

Although Motorola still has high hopes for the future, it may still not be as easy a ride for them, even for their successful Android smart phone unit. Competitors will be coming up with other Android smart phones and devices that may pose a direct or indirect challenge to Motorola’s own Android product line up. They would still need to capture consumer attention to what they may have in store for next year.


Tags: , , , ,