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Motorola Reports Impressive Profits, but Investors Not Satisfied

5:00 am on January 20, 2006 | Category: Business, Mobile Devices

With sales of the popular RAZR cell phone still going strong, Motorolaâ€™s fourth quarter financial results were decidedly positive, yet still a disappointment to some investors.

The company managed to sell 44.7 million handsets over the course of the quarter, racking up total sales of $10.43 billion. Profits meanwhile weighed in at $1.2 billion, or 47 cents per share, an impressive increase from $647 million, or 28 cents per share, in the final quarter of 2004.

But despite these numbers, a lot of investors were still somewhat disappointed, and the stock declined about 5% in after hours trading. Many were expecting a blowout quarter to end this year, in which Motorola increased its global market share from 16% to 19%. Unfortunately, however, no company can keep record setting growth and momentum forever.

In the coming year, Motorola will need to focus more on maintaining the market lead that theyâ€™ve already created, and keeping the RAZR one step ahead of copycat models from other manufacturers. They will also be forced to diversify their product line, and try to capitalize on the positive early results from newer handset models, such as the PEBL and SLVR.

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