Moto’s Meltdown

April 30, 2009

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The once powerful Motorola is in a head first plunge toward the icy waters of irrelevance since it’s leap from the peak of the cellular handset world. As a result, Moto is preparing to separate its handset losses from the rest of the company with a planned spin-off of its wireless phone division. However, results from the last quarter don’t bode much better for the rest of the company.

Motorola saw its net loss grow to $231 million in the last quarter with a fall of nearly $2 billion in sales over the same period last year.

At its high in 2005, Motorola held a 25% share of the mobile handset market. That share is currently 6% with a wince inducing loss of 23% from the previous quarter alone.

Moto will attempt to turn the death slide around with new Android based smart phones later this year, but many fear that tough competition in the smart phone market may make such a move too little too late.

The remainder of the company saw heavy, if not as dramatic, losses as well. Sales in the home networking division fell 16% in the last quarter and 11% in the enterprise business unit.

The company lost over $1 Billion of its cash reserves in the last three months with about $5.8 billion remaining.

Written by Todd · Filed Under Business, Mobile, Telecom