Motorola today announced financial results for their first quarter with shrinking market share and dismal cellphone sales.
Motorola reported a 39% drop in handset sales to 27.4 million units. Mobile devices accounted for losses of $418 million on sales of $3.3 billion. Earlier this month, the company decided to split into two companies, essentially jetisoning the unprofitable mobile phone unit. “During the first quarter, we made an important strategic decision to separate the company, creating two independent, publicly traded entities,” said CEO Greg Brown. “Improving the product portfolio in mobile devices and positioning both businesses for future success remains a top priority.” The report also issued a prediction for second quarter sales. Shares dropped 3.4% this afternoon on the news.