Handset maker, Motorola has reported second quarter results beating analysts’ expectations backed by a strong demand for its Android powered devices.
A survey of estimates compiled by Bloomberg estimated profit at 8 cents on average for the company. However Motorola reported second quarter profit at 9 cents a share, according to a company announcement on Thursday.
The revenues for the quarter stood at $5.41 billion above the estimated $5.2 billion. The fall is revenue was just 1.5% from the year-earlier period while Net income grew to $162 million, or 7 cents a share, from $26 million, or 1 cent, a year earlier.
The Motorola's Droid X mobile phone which is the latest phone powered by the Android system from the company was sold out at Verizon Wireless and Best Buy Co. stores. The success comes after another successful model Droid which was released last year.
Experst say that this is a good start for the company but it cannot rely solely on the Android platform. Kenneth Dulaney, an analyst at research firm Gartner said, "An operating system doesn't make a solid company. They have to innovate and stay ahead of very tough competitors.”
The co-chief executive at Motorola, Sanjay Jha who overseas the mobile phone business indicated that he expects the unit to bring in profits by forth quarter. He expects the company to launch more than 20 smart phones this year.
Motorola shipped around 2.7 million smart phones in the quarter and 8.3 million handsets overall. Mr. Jha said that the shortage of chips is a major challenge for the company. He expects the company to ship 12 million to 14 million smart phones this year.
Regarding, Droid X he said the device is "off to a great start" and "exceeding our expectations."
The company announced that it expects a profit between 10 to 12 cents a share in the third quarter. The analysts’ expectations stand at around 10 cents.
