Motorola, HTC, benefit from smartphone surge

Motorola and HTC benefited from the growing popularity of smartphones in the second quarter, with increased shipments boosting profits at both firms in 2Q.
 
Motorola said it had increased smartphone shipments to 2.7 million, and overall mobile device shipments to 8.3 million during the quarter – up from 2.3 million and 8.5 million respectively in 1Q.
 
The increased shipments helped the US vendor overturn an operating loss of $277 million in 2Q09 with a profit of $87 million in 2Q10, on sales of $1.7 billion.
 
While Motorola's handset unit was showing signs of recovery, results were more mixed for its networks division, which was recently acquired by Nokia Siemens Networks.
 
Sales fell 2% year-on-year to $967 million, however operating earnings grew to $178 million from $92 million a year ago.
 
Enterprise mobility sales grew 10% to $1.9 billion, while revenue at its consumer devices segment fell 13% to $886 million.
 
 
Overall, the company recorded sales of $5.4 billion, and profit of $162 million – compared to $5.5 billion and $26 million a year ago.
 
In Taiwan, HTC's handset shipments increased by four fifths year-on-year to 5.4 million, FT.com reported
 
The company's revenue increased 60% sequentially to NT$61 billion (€1.46 billion), as it generated net income of NT$8.6 million.
 
HTC expects shipments in 3Q to grow, predicting shipments of 6.5 million and record revenues of NT$70 billion.

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