Motorola still costing Google, but the upside is huge

October 18, 2013
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Though Google’s Q3 2013 financial results were stellar, beating industry analyst expectations and causing their stock price to surge this morning, one thing remains troubling. Motorola, Google’s recent hardware and patent acquisition, continues to suffer losses. Though the handset maker is poised for a revival, it’s just not happening.


In Q3 2013, Motorola’s revenue was $1.18 billion. Though nothing to sneeze at, their Q3 2012 revenue was $1.78 billion. They made up 8% of Google’s revenue for this quarter, compared to 13% this time last year.

The operating losses increased dramatically as well for Motorola, as they claim $248 million this year. Last year, their operating losses were $192 million. If you’re keeping track, we’ve got more operating losses on less revenue.

On paper, these seem like troubling figures, but let’s look at the satellite benefits. While Motorola is not doing Google any favors right now, they recently launched a string of very respectable devices. They bolstered their position with the nation’s largest carrier with the Droid lineup, and increased their position with AT&T by offering the Moto X customization to them exclusively.

Motorola is said to be offering a lower-cost device soon, which falls in line with CEO Dennis Woodside’s comments earlier this year that they would be diversifying their lineup with such a phone. As much as Motorola affects Google, in the grand scheme of it all, theirs is a long play, not a quick gain.


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  • SmokeNMirrors

    Moto also built a new manufacturing facility and employed a number of US workers. They’re making great devices so hopefully things will only get better!