Despite the Popularity of the Droid Razr, Motorola’s Profits Stagnate

It’s no secret that the Droid Razr was a big hit this 4th quarter, but apparently it wasn’t a big enough hit to make up a 80 million dollar loss in revenue for Motorola. That isn’t typically a bad drop, but it also means stagnating profits. Motorola saw a big raise in profits once they partnered with Google, which probably saved their business as a whole. Recently Motorola agreed to be acquired by Google for 12.5 billion dollars, which is still being processed by multiple financial regulatory agencies including the EU.

Motorola associated the loss with the late arrival of the Droid Razr and expects profits this coming year.

“In the fourth quarter, we received very positive consumer response to Motorola RAZR, which combined an iconic brand with ultra-thin in an innovative smartphone. Our Home business continues to be a leader in the industry’s transformation to all IP, with unique solutions that enable rich media experiences across any screen,” said Sanjay Jha, chairman and chief executive officer, Motorola Mobility, in a statement. “We remain energized by the proposed merger with Google and continue to focus on creating innovative technologies.”

It’s not all bad as Motorola actually sold more phones than the year before! They sold 4.9 million in 2010 and followed that up in 2011 with 5.3 million sold during each of those years fourth quarter.  With the rebirth of the RAZR line combined with Googles Android OS I could see these profit numbers turning around this year. We’ll have to see what they have on the horizon and see if the Google buy out will continue.



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