Google's Q1 2013 earnings beat profit estimates, but Motorola still losing money

Google's Q1 2013 earnings beat profit estimates, but Motorola still losing money
Google held its quarterly earnings call earlier today, and the news was something of a mixed bag for Q1 of 2013. Google's Q1 earnings surpassed the estimates for profit, but didn't quite live up to the revenue estimates, and Motorola is still losing money, which isn't much of a surprise since the division hasn't put out a quality handset since the DROID RAZR MAXX HD in October of 2012.

Google reported revenues of $13.97 billion, which is actually pretty impressive given that in the holiday Q4 of 2012, Google's revenue was only a bit higher at $14.4 billion. However, despite the dip in revenue, Google reported a profit of $3.90 billion and earnings of $11.58 per share, which is an increase from the $2.89 billion profit it reported last quarter. 

The Motorola division is still a trouble spot for Google. Because the division hasn't been releasing any real hardware, its revenue fell off from $1.51 billion to $1.02 billion as compared to last quarter. That amounts to losses of $271 million this quarter, which is proportionally similar to the losses the division saw last quarter, but still not a good trend. The X Phone needs to come soon for Motorola to turn things around. 

source: Google

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14 Comments

1. darkkjedii

Posts: 31529; Member since: Feb 05, 2011

Moto needs to do what Sammy learned from apple. That's market your usability, and practicality of their products. Motos market scheme is and has always been specs specs, and more specs. The mainstream consumer, the ones that actually make or break a products success don't really care about specs. They care about the end use experience. They out number "we techies" probably 100,000 to 1. Sammy has learned from apple to make their products appealing to the soccer mom, and they've unified their brand so you don't have to change carriers to get the s3 s4, or note 2. Moto is still primarily known as Verizon's stuff, they need to stop the carrier exclusives, and put the same phone on all carriers, and unify the brand like Sammy, and apple.

3. buccob

Posts: 2978; Member since: Jun 19, 2012

Even though you are only talking on a US scale... I completely agree with you, and that goes for all other manufacturers... They should start marketing their device and features better... not just the muscles inside... The other point that needs to be addressed by everyone but Samsung is software innovation... I love my Xperia but I do miss the software tricks and tweaks of my Galaxy S3

5. darkkjedii

Posts: 31529; Member since: Feb 05, 2011

I agree with you too. Samsung is killing the game rite now. Innovating like crazy, gotta give credit where credit is due.

7. Berzerk000

Posts: 4275; Member since: Jun 26, 2011

HTC is learning as well, I'm finally seeing more HTC ads, they got quite a few ads of the One in during the MTV awards just recently if I remember correctly. Hopefully Motorola will follow suit, in both marketing and product quality, because more competition is always welcome. I'm also hoping Apple will bring something new, because they've been slowing down to a halt in the innovation category the past couple years.

10. darkkjedii

Posts: 31529; Member since: Feb 05, 2011

You and me both berserker. 100% agreed

14. Aeires unregistered

If they run ads like Google did with the Nexus 7, they'll be okay. The little girl who wants to be an astronaut is an outstanding commercial. Totally agree with the Verizon exclusiveness needing to go. They also need to kill "Droid" once and for all. Testosterone driven commercials do nothing but isolate large target audiences.

2. bubbadoes

Posts: 1225; Member since: May 03, 2012

Only releasing Droid and 6 variants of the Razr line up is not gonna increase profit margins

12. noim1

Posts: 297; Member since: May 15, 2012

agree moto needs to expand its is region and make their product available to all. ..they need to make it off contact and put more countries. ..I wanted to buy the Droid Razr MaXx HD but is only for verizon & so not available in my country. ..

4. sprockkets

Posts: 1612; Member since: Jan 16, 2012

Better than losing $500 last quarter. And unlike Nokia they aren't paid a billion a year either.

6. Tyrexl050

Posts: 19; Member since: Nov 11, 2011

In other words... HURRY UP WITH THE MOTOROLA X.

8. Berzerk000

Posts: 4275; Member since: Jun 26, 2011

Motorola needs to ramp up development and production of the X. If they don't announce it at I/O, or at least give more details and create some more hype, things are going to get rough for them. Being at Google's side, they shouldn't have any problem providing us with the best hardware, design, and software. Maybe they'll bring durability and beauty of design together Maybe they'll give top notch specs, possibly even raising the bar in performance Maybe they'll make software that gives us productive and useful features, while mostly retaining stock Android. Or, maybe it will just be a small step up from the current Razr Maxx HD. Either way, can't wait to see what they've come up with.

9. james1

Posts: 97; Member since: Mar 16, 2013

Maybe Motorola wouldn't loose as much money if they released their devices on all major carriers and not just Verizon...seriously isn't this obvious...more carriers = more potential buyers!

11. xperiaDROID

Posts: 5629; Member since: Mar 08, 2013

Don't worry, after the X phone, Motorola will rise again! :)

13. boosook

Posts: 1442; Member since: Nov 19, 2012

Of course Moto is losing money, they're not releasing anything... they really have to release something and it must be something worth buying, because its competitors have interesting ideas, from the optical stabilizer to stereo speakers, double membrane microphones and so on. Times when you could build a desirable flagship by simply using the latest and fastest processor are over.

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