Motorola benefits cost cuts for two consecutive quarterly earnings

Analysts pointed out that the global demand for mobile phones will lead to a 2010 price war Ma Xiaofang when everyone doubts that Motorola's second-quarter earnings were "accidental", Motorola October 29 took out a third-quarter earnings earnings, and also expected fourth-quarter earnings to be higher than expected,　　Did Motorola start bottoming out?　　Motorola's three-quarter income of $5.45 billion, down 27% per cent, has achieved a net profit of 12 million dollars, while the company lost 397 million dollars in the same period last year. This is Motorola's second consecutive quarter to achieve profitability. Motorola earned 26 million dollars in the last quarter.　　The company's profits are largely due to cost cuts rather than revival of the main business. Motorola Mobile device sales in the third quarter were $18.7 billion trillion, down 46% from a year earlier. This quarter, its mobile phone volume of 13.6 million, is expected to account for the global mobile phone market share of 4.7%, while the last quarter market share of 5.5%.　　In the face of continuing declines, Motorola has proposed layoffs of about 8,000 this year, and will increase this year's cost-cutting plan by 100 million to 1.9 billion dollars. Sanjay Sanjay Jha, Motorola's joint CEO and Mobile-Phone division CEO, is trying to take the company out of the doldrums with its new Android handsets. In the upcoming Christmas shopping season, Motorola will launch the Cliq and droid two models of Android handsets. Motorola plans to launch 20 smartphones in 2010, most of which are based on the Android system. In the fourth quarter, Sanjay said, mobile revenues will be higher than in the previous quarter, and the growth trend will continue into 2010 years. "While Motorola's overall handset shipments will be reduced, higher-margin smartphone sales will boost corporate performance," he said. "He expects Motorola's mobile phone business to make ends meet next year," he said.　　That means Motorola will be completely out of the mire next year. Strategy Analytics, a market research firm, expects global handset sales to be around 291 million in the third quarter, down 4% year-on-year. IDC, a market-research firm, estimated that global handset sales fell 6% to 287 million in the third quarter.　　However, Strategy Analytics analyst Nier Moston believes the global handset market will grow by about 3% per cent year-on-year in the quarter after 4 consecutive quarters of declines. The mobile phone industry may be "bottoming out", but some analysts also point out that the global mobile phone market is too competitive, oversupply will lead to a 2010 price war.