Android leads Motorola from the cellar to viable business

September 1, 2010 | by Andrew Kameka

Motorola has greatly benefited from CEO Sanjay Jha’s calculated bet on Android. The company was losing hundreds of millions of dollars when Jha took over in 2008, but it has since reversed fortunes and is self-estimated to be profitable by the end of the year. That will come in handy when Motorola splits its mobile division into a new company named Motorola Mobility.

Android has been credited for Motorola’s turnaround since the runaway success of the Droid. As Motorola Mobile makes filings to prepare for a switch to an independent mobile company, we get a look at just how dramatic that turnaround has been. In the first half of 2009, before the release of the Droid and Cliq, Motorola lost $885 million dollars. In the first half of 2010, with several Android devices in markets across the globe, the company lost only $132 million.

When Motorola becomes a standalone company, Android will most likely not be the only OS. CEO Sanjay Jha previously said that he’d like to have a proprietary OS if the money was available; that money will probably be available based on a recent report by Bloomberg news. Bloomberg says that Motorola will start Moto Mobility with $3.5 billion in cash for operations and acquisitions, likely for software companies. The company has already purchased a software company named Azingo, and more could follow.

It’s wise for Motorola to expand beyond being a one-trick pony less they risk falling back into the RAZR trap. However, Android will still play an integral role in Motorola’s business. Heck, it saved Motorola’s business.

android os, business, motorola, quarterly, sales

6 Comments

zenaxe said: On September 1, 2010

The LAST thing the world needs is yet another Mobile OS, IMHO. It will just divide resources in house.

Betting on Android is nothing like betting on RAZR, IMHO.

Zed said: On September 1, 2010

big mistake if they go for a new mobile OS…….it is already a crowded area……!!!!!!…..scrap the s/w part (including MOTBLUR)….and concentrate on better h/w…..
My recent post What Is Froyo

@LucianoBraga said: On September 1, 2010

Cliq and Cliq XT saved Motorola. And Motorola abandoned this buyers with a lousy Cupcake and a half-worked Eclair.

So, I want the worse luck possible for MotoFAIL Mobility.

Martin Mik said: On September 2, 2010

So it seems they re basically milking the Android system, which fits well to the lousy attitude this company has.
No Motorola, ever again. They deserved their bankruptcy.

Francis said: On September 2, 2010

I wouldn’t even consider a Motorola unless it was running Android. What is he thinking? That people love the hardware? That their OS & SW can compete vs Android, iOS and Win Phone 7?

It’s bad enough they put moto blur on some handsets. It’s hard to laugh. It’s going to be a waste of stock holders money. Just concentrate on making better hardware…

Lucas said: On September 3, 2010

Motorola thanks Cliq/Dext, Backflip and Droid customers for his success. Well… Cliq/Dext, Backflip and Droid European and Latin American customers were forgotten and will never receive an update. MOTOFAIL!

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