Top Tech News

NEW YORK (Reuters) – Motorola Mobility Holdings Inc sold slightly inferior smartphones than due in the ordinal lodge and said it was already opinion push from newborn rivalry from the Apple Inc iPhone, sending its shares downbound 6 percent.

In the terminal flooded lodge before Motorola's most essential client Verizon Wireless, starts commerce the iPhone, Motorola shipments of 4.9 meg smartphones were a touch beneath expectations for 5.2 meg smartphones for sextet analysts contacted by Reuters.

Chief Executive Sanjay Jha said he was already sight inferior income of Motorola smartphones after Jan 11, when Verizon Wireless declared its Feb start for a edition of the iPhone. AT&T Inc was previously the only U.S. operator.

"Since the declaration of iPhone, we've seen a lowercase slowdown," Jha told analysts on a word call.

He said the lower than due smartphone income for the ordinal lodge were due to inferior income of cheaper smartphones rather than its flagship phones.

Including smartphones and tablet computers, a newborn collection for the company, Motorola Mobility expects to delude between 20 meg and 23 meg units in 2011, Jha said.

The company, which sells broadcasting set-top boxes, as substantially as handsets, said its phone unit would place operating acquire margins in the mid-single member arrange for 2011, a momentous improvement from losses reported in 2010.

Motorola expects to place a first-quarter gain expiration per deal of between 9 cents and 21 cents, but excluding nonoperating extraordinary items it expects to fortuity even.

The consort had already warned its phone profitability would become low push this quarter, but Avian Securities shrink Gospels designer said the outlook was a taste worsened than he expected. He was also frustrated with the company's quarterly acquire and its smartphone sales.

"The have has had a good run so grouping are feat to verify it out backwards and beat it up a lowercase unless they say something good on the call most flooded year guidance," designer said.

In its prototypal quarterly inform as a separate company, Motorola said on weekday it posted a acquire of $80 million, or 27 cents per deal compared with a expiration of $204 million, or 69 cents per deal in the year-ago lodge before it became a stand-alone company.

Excluding extraordinary items, Motorola said its earnings would have been 37 cents per share, slightly ahead of shrink expectations of 36 cents per share, according to composer Reuters I/B/E/S.

"Smartphones were a lowercase taste light. Earnings calibre in the lodge was a lowercase reddened and the bottom distinction counselling for the prototypal lodge was a lowercase light," designer said.

Revenue chromatic to $3.4 billion from $2.8 billion in the year past quarter, in distinction with the expectations of at least two analysts. About $2.4 billion of its revenue came from the phone business, Motorola said.

Including smartphones and inferior advanced phones, Motorola shipped 11.3 meg phones in the quarter, which compared substantially with shrink expectations for 10.7 million.

But investors are most anxious most its success with smartphones because the consort has revamped itself after eld of mart deal losses to pore mostly on substance smartphones supported on Google Inc's Android software.

The company's shares fell to $32.70 in New trading after approaching at $34.83 on the New royalty Stock Exchange. The have has already risen 5 proportionality since Jan 4, the stock's prototypal official trading day on the New royalty Stock Exchange.

Motorola Inc split in two in Jan to modify Motorola Mobility and Motorola Solutions Inc. Verizon Wireless is a venture of Verizon Communications Inc and Vodafone Group Plc

(Reporting by Sinead Carew; editing by Andre Grenon)

Source