smartphones
Strong sales of its latest Android-powered smartphones are expected to boost second-quarter results for Motorola Inc. (MOT) this week, showcasing the company’s effort to revive its mobile-device business.
Motorola is slated to report its second-quarter results on Thursday before the opening bell.
For the second quarter, Wall Street expects Motorola to report earnings of 8 cents a share on revenue of $5.2 billion, according to estimates from FactSet Research. The company earned a penny a share from continuing operations on revenue of $5.5 billion in the same period last year.
Motorola has been revamping its handset business to focus on a smaller range of smartphone devices that command better pricing than feature phones.
Analysts expect total handset shipments of around 8 million units, down from 14.8 million units in the same period a year earlier. But average selling price per unit is expected to jump, from $129 last year to more than $200 this year, according to analysts’ projections.

“We expect results to be at least in line with potential for a small beat, driven by a continued improvement in Mobile led by continued strength in Android models, with other segments largely in line with management guidance,” Jim Suva of Citi wrote in a report to clients earlier this month.
The company has benefited of late from the launch of its latest smartphone–the Droid X. A sequel to the best-selling Droid that went on sale at Verizon Wireless late last year, the Droid X was greeted with enthusiastic crowds and sold-out stores when it hit the market on July 15.
The enthusiasm has also benefited Motorola’s stock, which has surged by more than 20% this month. Anther factor may have been the well-publicized controversy over the device’s main rival–Apple Inc.’s (AAPL) iPhone 4.
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“One thing to consider is that after just a few days of availability, it appears that Motorola’s Droid X has exceeded even the most optimistic views with Verizon now indicating a delivery date of August 3,” Mark Sue of RBC Capital Markets wrote last week.
source:online.wsj.com