Google’s Q2 earnings hurt by Motorola’s $342 million loss, will the Moto X be able to reverse the trend?
Google’s Motorola business continues to bleed money at an alarming rate, losing $342 million in the second quarter of 2013. As can be expected, this has hurt its parent company’s latest earnings, which today reported it missed expectations at revenues of $14.11 billion and EPS of $9.54.
The same quarter a year ago, Motorola’s operating loss was $199 million. In other words, the Q2 2013 results are worse than those in Q2 2012.
The question on everyone’s mind is of course: can the Moto X save the day? Given that revenues were up, $998 million this past quarter compared to $843 million in the same quarter last year, it’s certainly possible. We’re not holding our breath though.
First of all, the latest rumors suggest the Moto X will launch in August. If true, that would give Motorola about one quarter of sales.
Even if the Moto X outsells every other phone on the market, Motorola is still spending money on pushing other phones, all of which aren’t doing very well in today’s cut-throat market. As a result, if the Moto X is the comeback phone for Motorola, we certainly won’t see a turnaround on the financial side this year.
More to follow.
