Motorola Q1 Dismal, But Android Phone In Works

How much longer can this go on?

It is said (since I have no experience of this myself) that soap operas provide optimism because the situations are so depressing they make you feel better about yourself. I wonder if that’s how the rest of the industry sees Motorola…?

The troubled communications giant (if a shrinking one) has this week reported yet more awful financial results for what seems the millionth quarter in succession. Net losses were a whopping $231m in first quarter a near 20 per cent increase on the $194m it lost in the corresponding quarter last year. That said it is a substantial improvement on the remarkable £3.6bn it lost in Q4 thanks largely to $1.5bn worth of ‘cost reduction strategies’ (byword for…? Yep, you got it).

Revenue continues to disappoint too with Motorola managing $6.1bn which was heavily down on the $7.4bn during that dreadful Q4. The mobile devices segment also showed how to make a real pig’s ear of things with sales of $1.8bn – down a mind numbing 45 per cent on Q1 2008 – with losses up 21 per cent from $418m to $509m. Motorola’s share of the mobile phone market also dipped to just six per cent.

More encouraging is talk from Motorola CEO Sanjay Jha who confirmed “we plan to have differentiated Android-based devices in stores in time for the fourth-quarter holiday season”. Problem is by Q4 2009 that may no longer be the market differentiator it would’ve been earlier in the year and based on the shot already snagged of one model by BGR (pictured) it doesn’t exactly set the heart racing.

So where next for Motorola? Sadly, I think I know…

Press Release