Motorola handset share slumps to six per cent

Motorola's handset division lost $509m in the first quarter of the year

Motorola's first-quarter results showed slowing sales and widening losses, as the company continues to lose ground in the mobile handset market.

The manufacturer said that its handset division lost $509m (£342m) in the first quarter of the year, a slight improvement on the $595m (£400m) it lost in the fourth quarter of 2008.

Motorola sold just 14.7 million handsets in the period, down from 27.4 million a year ago. Handset sales were down 45 per cent to $1.8bn (£1.2bn), giving the firm just six per cent of the market, compared to nearly 25 per cent three years ago.

"We implemented aggressive actions to reduce costs, and also gained solid traction on improving operational effectiveness," said Sanjay Jha, co-chief executive of Motorola and chief executive of Motorola Mobile Devices.

"Customer feedback on our smartphone roadmap remains very positive, and we plan to have differentiated Android-based devices in stores in time for the fourth-quarter holiday season."

Motorola is hoping that Google's Android will help revive its fortunes, and plans to launch multiple handsets from entry-level devices to smartphones. Jha said that the company will launch the handsets in multiple regions, not just in its main US market.

Motorola's home network and enterprise mobility division also fared badly during the quarter, losing 16 per cent and 11 per cent of sales respectively. The company expects losses for the second quarter.