Legal Cost And Extreme Competition Devoured Motorola Mobility’s Revenue In Q4?

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In the beginning of 2012, Motorola Mobility declared that it won’t follow the tradition to release reckless number of devices lineup. The company planned to launch selected number of device, and decided to focus on increasing the market Dollars. The company also predicted that Q4 report might be failed to fulfill the Wall Street’s Expectations due to legal cost and tough competition from rivals such as Apple. Finally, Motorola Mobility has released its Q4 and year-end financial report. The company’s new figure reveals that the company has managed to rake $3.4 billion, incurred a net loss of $80 million.

Motorola Mobilitybated lots on Droid RAZR and XYBOARD in the holiday session, but the company didn’t get noticeable sales. Motorola announced that they shipped 10.5 million mobile devices in Q4 last year, down in the shipment from 11.3 million a year ago. Among total 10.5 million mobile devices shipped, Smartphone contributed 5.3 million units. On the contrary, Samsung running on the Android OS shipped 35 million units Smartphone in same quarter last year.

Looking to yearly shipment, Motorola Mobility shipped total of 42.4 million mobile devices, which includes 18.7 million Smartphone and 1 million Tablets. The company’s revenue in Q4 last year barely rose to $3.436 billion from $3.425 billion in the year ago quarter.  Also the set top box revenue fall 11% from the year-ago quarter to$879 million, while the revenue rose 5 % to $2.5 billion.

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The intense competitions from the rivals such as Apple, Samsung, and Amazon have eaten Motorola’s Smartphone and Tablet market share. However, the company has endeavored lots to give tough competition to rivals but it went to vein.

Google has staked $12.5 billion for Motorola in August 2011, and recently, the acquisition is under the legal approval. Motorola is awaiting approval from regulators in several countries, including the US, china, Europe, Canada, Israel, Taiwan, Russia, and Turkey. The acquisition of Motorola by Google would benefit both the companies—will integrate Android ecosystem in order to assert rivals.

Do you think the expenditure over legal IP issues, intense competition, and failure of Motorola XOOM and RAZR were main reason for the decline of company’s revenue in Q4?

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