Motorola profit surges on handset gains, does not disclose unit sales of ROKR iTunes phone

“Motorola Inc. on Tuesday said third-quarter net profit more than tripled, as the technology bellwether benefited from higher wireless-phone sales, a onetime tax benefit and the sale of an investment,” Jeffry Bartash reports for Dow Jones. “The Schaumburg, Ill.-based company, the world’s second-largest seller of wireless phones, posted a net profit of $1.75 billion, or 69 cents a share. That was up sharply from $479 million, or 20 cents, a year earlier. Sales climbed 26% to $9.42 billion from $7.5 billion, as the company shipped a record 38.7 million handsets. Wall Street was expecting shipments of around 35 million to 36 million. Excluding onetime items, Motorola (MOT) earned 30 cents a share. That beat the 28-cent consensus of analysts surveyed by Thomson First Call.”

Bartash reports, “Looking ahead, Motorola predicted fourth-quarter sales of between $10.3 billion to $10.5 billion, with profit from operations of 32 cents to 34 cents a share. Analysts were expecting a profit of 33 cents a share… Motorola’s popular RAZR, the thinnest phone in the industry, has been a huge hit. The company said it’s the biggest selling phone in the world with a foldout “clamshell” design. Motorola sold 6.5 million units in the third quarter, and it’s sold more than 12 million units overall… The company has also started selling a phone [ROKR] based on Apple Computer Inc.’s (AAPL) popular iTunes music player, though the model was released late in the quarter and analyst doubt it had much impact on sales. The company did not disclose sales of those phones.”

Full article here.

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  1. The ROKR was a nice way to ease Apple into the telecom industry. Since Palm is heading toward the dark side with Windows Mobile, I hope that Apple will create their own mobile darwin / mobile OS X: Spotlight search, multitasking, iWork mobile, iCal mobile, Address Book, Webkit mobile.

    But how about text entry? The treo has the keyboard, and it would be challenging to have a mobile device without one.

  2. Moto are having a iPod experience with the RAZR. Hopefully it will continue for them. I do like the look of the phone – someone finally got the idea that looks do matter.

    An 18.5 % Income vs Revenue isn’t that bad. That beats Aapl’s margin of ~ 11.5 %. Still moto did sell 36 million units – that helps to lower costs.

  3. From Motorola salespeople about ROKR quoting customers reactions

    1: Way too expensive

    2: Not enough song capacity

    3: Phone is cheap plasticy and ugly

    4: Sound is horrible

    5: Controls are difficult, big delay when using

    6: Most customers are stupid, don’t use computers

    7: Customers like the Nokia phones best

    8: Customers just want a good phone, at a good monthly price, with no “scams”, fake rebates or other tricks.

    The present cellular phone market is like the Windows PC market, insanly confusing, complicated and full of scams.

    Apple would do good producing their own phone.

    1: Would look great

    2: Will run great

    3: Would be easy to use and master

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