Motorola: increasing deficit

Motorola has published their official financial results for the first quarter, which reports of an increasing deficit and decreasing sales. The mobile phone department of the company has sold 27.4 million cell phones during the first three months, from which they obtained 3.3 billion USD net sales, this value being over 5.4 billion dollars a year before. Due to the 39% drop the company's loss has further increased. While operating loss was "only" 233 million USD last March, this has increased to 418 million dollars in Q1 this year.

The company's market share is also in a continuous decrease. Recently Motorola had a cell phone market share of 23%, but this value has shrunk to 9.5%, which is only enough for the third place and both Sony Ericsson and the ambitious LG seriously endanger even this position.

During the last three months Motorola has launched six new phones, including the musical ROKR U9, the HSDPA-enabled MOTO Z9, the business communicator MOTO Q and there are three cheap handsets from the "W" series. According to these numbers it's clear that Motorola is in an extremely grim situation. During the last few months, however, the company's leadership has taken serious steps in order to completely transform the company and the first results are expected this year.