Motorola posts profit fall as handset unit struggles

Motorola reported a sharp fall in profits in its fourth quarter results. The company warns that the recovery in its ailing handset division will take longer than expected.

The handset unit, Motorola’s biggest division, had an operating loss of $388m (£199m) for the fourth quarter of a disastrous year, which saw its handsets sales fall 33% overall from 2006.

Motorola chief executive Greg Brown says: “The recovery in mobile devices will take longer than expected and there is a lot more work to be done.”

The company reported a net profit of $100m (£51m) down from $623m (£318) the previous year. Sales fell to $9.65bn (£4.9bn)from $11.79bn (£6bn) a year earlier. This month Ogilvy Group created its first campaign for Motorola for its Razr 2 phone. The outdoor and print push features footballer David Beckham.

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