Motorola mobile sales down; 2007 revenue drops 15%

New CEO focuses on getting phone sales 'back on track'

Motorola Wednesday reported sales of US$36.6 billion (AU$41.9 billion) for 2007, a drop of about 15% from its 2006 sales of US$42.8 billion. The company attributed the drop largely to problems selling mobile devices.

For the fourth quarter, sales were US$9.6 billion, down from US$11.7 billion in the same quarter a year earlier.

Sales of mobile devices were off by 33% for the full year, coming in at US$19 billion, the company reported. For the fourth quarter, mobile device sales were US$4.58 billion, down 38% from the same quarter in 2006.

CEO Greg Brown, who recently took the reins at Motorola, said in a statement that his team is "working to get mobile devices back on track."

The company did see some positive developments in the mobile device arena in the fourth quarter, with shipments of nearly 41 million handsets and announcements of nine different phones, including a second edition of the Razr and the U9. A phone shown at the recent International Consumer Electronics Show, the Rokr E8, won four best of show awards, Motorola officials noted.

Other segments of the company showed improvement in the quarter and for the full year. Home and network mobility sales were US$2.7 billion for the quarter, up 11% over the year-earlier quarter. And for the year, Motorola's sales in that segment hit US$10 billion, a 9% increase from 2006.

Revenues from enterprise mobility offerings were US$2.1 billion, up 35% from the same quarter a year ago, driven by sales from the Symbol Technologies business unit, which Motorola acquired in early 2007. That unit had sales of US$7.7 billion for 2007, up 43% from 2006.

Jeffrey Kagan, a technology analyst who has followed Motorola for many years, said the company has "hobbled between doing very poorly, then very well, and now poorly again."

Kagan said Motorola failed to find a device to follow the success of the first version of its Razr phone. He said Motorola may not be able to recover with a hot technology product in 2008.

"The cell phone business is very tough and changes very fast," Kagan said. "It is a technology business, but it is also a fashion business."

While Brown has good industry experience, "it will be a while before we know whether [he] can resuscitate the company," Kagan added.

Join the PC World newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Matt Hamblen

Computerworld
Show Comments

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Matthew Stivala

HP OfficeJet 250 Mobile Printer

The HP OfficeJet 250 Mobile Printer is a great device that fits perfectly into my fast paced and mobile lifestyle. My first impression of the printer itself was how incredibly compact and sleek the device was.

Armand Abogado

HP OfficeJet 250 Mobile Printer

Wireless printing from my iPhone was also a handy feature, the whole experience was quick and seamless with no setup requirements - accessed through the default iOS printing menu options.

Azadeh Williams

HP OfficeJet Pro 8730

A smarter way to print for busy small business owners, combining speedy printing with scanning and copying, making it easier to produce high quality documents and images at a touch of a button.

Andrew Grant

HP OfficeJet Pro 8730

I've had a multifunction printer in the office going on 10 years now. It was a neat bit of kit back in the day -- print, copy, scan, fax -- when printing over WiFi felt a bit like magic. It’s seen better days though and an upgrade’s well overdue. This HP OfficeJet Pro 8730 looks like it ticks all the same boxes: print, copy, scan, and fax. (Really? Does anyone fax anything any more? I guess it's good to know the facility’s there, just in case.) Printing over WiFi is more-or- less standard these days.

Ed Dawson

HP OfficeJet Pro 8730

As a freelance writer who is always on the go, I like my technology to be both efficient and effective so I can do my job well. The HP OfficeJet Pro 8730 Inkjet Printer ticks all the boxes in terms of form factor, performance and user interface.

Michael Hargreaves

Windows 10 for Business / Dell XPS 13

I’d happily recommend this touchscreen laptop and Windows 10 as a great way to get serious work done at a desk or on the road.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?