As Motorola Mobility reported increased smartphone sales, the company's Android tablet, the Motorola Xoom, is fighting an uphill battle in the market.
The company's overall revenue grew 11%, to $3.3 billion. Revenue for its mobile device division increased 20%, to $2.4 billion, while the set-top box segment saw revenue fall 10%, to $825 million.
Motorola Mobility is currently in the process of being acquired by Google for $12.5 billion.
The company shipped a total of 11.6 million mobile devices, including 4.8 million smartphones and approximately 100 000 Motorola Xoom tablets. In the third quarter of 2010, the company shipped 9.1 million mobile devices, including 3.8 million smartphones.
The Motorola Xoom was the first Android Honeycomb tablet to market, but its comparatively high price has meant it has struggled to win over consumers.
While analyst predictions weren't very high for the Xoom, the quarterly results were poor even compared to its own previous quarter, in which 440 000 Xoom tablets were sold. In the same quarter, Apple reported 1.1 million iPad sales.
The drop in Xoom sales has been attributed to the fire-sale of HP's TouchPad, which saw the tablet's prices being slashed by up to $300 in order to flog them off on the market.
Research in Motion has also been struggling to gain traction in the market with its BlackBerry Playbook tablet. The company is now reportedly offering a three-for-one deal to its business clients, in the hope of seeing adoption of the tablet within businesses.
Google boost?
Motorola Mobility is hoping to see an improvement in its fourth quarter results as the high-end Droid Bionic handset and the Droid Razr go on sale.
“Our third quarter revenues in Mobile Devices increased by 20%, driven by continued strong growth in international markets,” said chairman and CEO of Motorola Mobility, Sanjay Jha.
“We are also excited about the proposed merger with Google and continue to make progress to close this transaction.”
According to Motorola Mobility, the acquisition is expected to be completed by year-end or early 2012, subject to the satisfaction of customary closing conditions, including antitrust clearance.
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