Motorola posts record high Q1 sales, handset shipments

Motorola Tuesday said its sales in the first quarter soared to a record high as it shipped more mobile phones and set-top boxes during a three month period than ever before.

The maker of the popular Razr line of ultra-thin mobile phones cited particularly strong year-on-year performance in China, India and Africa. It also claimed to have increased its mobile phone market share globally to around 21 percent during the three months ended March 31, up 4.8 percent over the same time last year.

In all, the Schaumberg, Ill., company shipped 46.1 million handsets during the first quarter, up by more than 50 percent compared to the same period in 2005. This topped the 44.7 million mobile phones it shipped during the final three months of last year, Motorola said.

Motorola also sold a record 2 million digital set-top boxes in the quarter, the company said.

The company’s performance shows sales of mobile phones have really taken off this year. Normally, the fourth quarter is the peak season for handset sales due to holidays in the West. But both Motorola and mobile phone chip leader Texas Instruments Inc. predict even stronger sales in the second quarter of this year, after bold performances in the first three months of 2006.

Motorola reported its revenue rose 23 percent to $10.01 billion during the first quarter, compared to $8.16 billion in the same period last year. However, its net profit slumped to $686 million, or $0.27 per share, from $692 million.

The falling net profit figure caused worries the company is selling its wares for lower prices, beefing up its revenue figures and increasing market share at the expense of profits. Motorola’s stock fell 4.9 percent in after-market stock trading to $22.90.

The company forecast its revenue in the second quarter will hit a new record, between $10.3 billion and $10.5 billion, while its earnings per share reach $0.30 to $0.32.