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

Must Read

Apple Inc. (AAPL) And Samsung Group (005930) Combined Smartphone Market Share Shrunk To Below 50% In Q1 2014: Huawei and Lenovo Rising Fast!

Apple Inc. (NASDAQ:AAPL) and  Samsung Electronics Co. Ltd. (KRX:005930) are the undisputed heavyweights of the smartphone world. Together, both brands accounted for 50%...

Sales Of iPhone XS, XS Max In India: Buyers Giving The Cold Shoulder, But It’s Not Time For Apple To Panic Just Yet

Apple Inc. (NASDAQ:AAPL) recently launched their new flagship lineup of iPhone for 2018, and they were met with equal...

Uber India Layoffs 25% Workforce Citing Tough Market Conditions

After laying off thousands of employees in the US, Uber is scaling down its operations in India...

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.

Advertisements

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?

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest News

Uber India Layoffs 25% Workforce Citing Tough Market Conditions

After laying off thousands of employees in the US, Uber is scaling down its operations in India...

Apple is Being Evil For 1.5 Billion iPhone, iPad Users Worldwide

Last year when Apple Inc. (NASDAQ:AAPL) was accused of recording everything that iPhone users were talking through Siri, the company was quick...

Is Bill Gates Developing Covid-19 Vaccine To Track Billions Of Users Worldwide?

Bill Gates is once again at the centre stage of controversy related to novel Coronavirus. Battling falsehood and paranoid...

Darkest Before Dawn: Can India Survive Its Worst Ever Recession?

Bolt your doors, batter down your hatches, brace yourselves. Recession is about to make landfall. According to Goldman Sachs, a...

Crisis Of Trust: The Glue Between Brands, Customers And Employees!

The COVID-19 crisis, which shows no sign of stopping any time soon, has left no life untouched in terms of impact. It...

WeWork Valuation: $2.9 Billion, Way Below Than Estimated $47 Billion 6 Month Ago

If you are thinking it is some kind of clickbait, you are highly mistaken. The debate on the valuation of WeWork once...

In-Depth: Dprime

Fantastic 4: Four Day Work Week A Flashpoint Of Innovation?

It has been an idea that has been mooted by many, perhaps also somewhat sceptically. From being a dark horse to becoming...

TikTok Is Facing The Wrath Of People Who Love It The Most

Ever since the popular social media app TikTok entered India, it has been growing very aggressively in terms of users. Within a...

Facebook Shops: Looking Beyond Ad Dollars!

Amid this global pandemic, when companies are struggling to find new verticals to pivot towards in order to maintain their revenue and...

More Articles Like This