Report1 - Nokia and Motorola posted fourth quarter results...

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Nokia and Motorola posted fourth quarter results last month, their varying sales strategies yielded wildly different results. Nokia gained increased profits, but it couldn't increase its presence in the U.S. market. Nokia posted a 19 percent jump in fourth quarter earnings from a boost in demand for its cell phones in India and China. Net profits for the quarter rose to $1.65 billion from $1.38 billion a year ago, while revenues jumped to $15.1, billion, a 13 percent increase over the same period last year. Motorola had disappointing earnings, but saw a fourth quarter spike in sales. During the quarter, Motorola had an increase of 36 percent in sales by outselling its competitors in the low- end phones category in China, India and South America. Motorola’s North American sales dove 39 percent, yet it made gains in all other regions, including a 54 percent increase in Chinese sales, along with a 60 percent gain in Asian-Pacific sales. TOUGH DECISIONS Meanwhile, the picture wasn't quite as rosy for the world's No. 2 handset maker. Motorola CEO Ed Zander announced 3,500 job cuts saying, “slimming of the company's workforce by mid-2007 will save about $400 million over the next two years.” Zander told analysts that the company will beef up its line of higher end phones, in the hope that it will provide a boost to its profit margin. Motorola posted net income of $624 million, down 48% from the year-ago quarterly profit of $1.2 billion. Interestingly, Motorola's sales jumped 18% from last year's $10 billion to $11.8 billion
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This note was uploaded on 05/03/2008 for the course BUS 139 taught by Professor Grooms during the Spring '08 term at Irvine Valley College.

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Report1 - Nokia and Motorola posted fourth quarter results...

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