Motorola Mobility Continues to Launch New Smartphones
Motorola Mobility (NYSE:MMI) is expected to launch 10 new smartphones in 2011 on Sprint's (NYSE:S) network, which it hopes will help turn around the company's string of losses.
The company is struggling against competitors like Apple (NASDAQ:AAPL), Research in Motion (NASDAQ:RIMM) and Nokia (NYSE:NOK). We have a price estimate of $24.60 for Motorola Mobility, which is around 10% ahead of the market price.
Motorola Mobility has Struggled to Maintain its Profitability
In the recently announced quarterly earnings, Motorola Mobility suffered from an operating loss of $36 million and net loss of $81 million.
Can Motorola Mobility Turn a Profit?
Motorola Mobility earns higher margins on smartphones, which could help SG&A and R&D expenses as % of gross profits could decline in the future.
New Phone Lineup is Critical for Sales
The company has high hopes for new phones like the Motorola Photon 4G, Motorola XPRT and Motorola Triumph. The Photon 4G integrates several advanced multimedia capabilities and is capable of functioning as a world phone while XPRT is a business-class Android smartphone.