Motorola is finding out that more is some times less. The world’s second largest mobile-phone maker shipped a record 65.7 million handsets in the last quarter, but the company had to slash prices in response to strong competition.
Its share of the world market rose to 23.3%, but much of the increase came from cheaper phones sold in developing markets.
Because of that Motorola suffered a 48% drop in fourth-quarter profit, though the figure for the same period last year was distorted by the payment of debt from the Turkish phone company Telsim.
The company also said it would cut 3,500 jobs as part of its ongoing effort to trim costs.
Looking to the future however Motorola said it believes sales this year may exceed analysts’ estimates.