Motorola posts loss for 2Q, Xoom flounders

Motorola posts weak 2Q as Xoom flounders

Motorola Mobility had a somewhat disappointing second quarter, as the company posted a net loss of $56 million. Its smartphone sales were pretty good but its tablet sales are not even close to what the market leader is doing.

Thanks to solid handsets like the Droid X2, Motorola was able to ship 4.4 million smartphones for the quarter and 11 million phones overall. With the Photon 4G just around the corner and a potential superphone coming to AT&T soon, the company’s smartphone sales should continue to surge.

“In the second quarter, Mobile Devices launched several new smartphones in the U.S. and markets around the world. Revenues grew over 40 percent driven largely by Latin America and China where sales more than doubled year over year. Our Home business delivered another strong performance, and we introduced several innovative products and services for next generation multi-screen video solutions,” said Sanjay Jha, chairman and chief executive officer, Motorola Mobility, in a prepared statement. “With a focus on profitable growth and delivering differentiated LTE smartphones and tablets, we expect to achieve profitability in Mobile Devices in the fourth quarter and for the full year 2011.”

The tablet success is a different story, as the company shipped 440,000 Motorola Xoom tablets for the quarter. For a brand new product in a still-developing market, that’s not too bad but it pales in comparison to what Apple has been able to do with its iPad lineup. Phonescoop’s Eric Zemen pointed out that Motorola has sold 690,000 Xoom tablets total while Apple shipped 9.25 million iPad in its last quarter alone.

So, it wasn’t a great quarter for Motorola and the next quarter’s outlook won’t set the world on fire. We believe Jha has done a good job of transitioning the company to Android as it split into an independent company but now it’s time for Moto to start innovating and showing us some killer hardware.

[Via Motorola]

Back to top ▴