India-China contribute to Motorola and Nokia growth

Posted on | July 23, 2006 |

Announcing its second quarter results yesterday, Motorola posted all time high mobile device sales this quarter, including record operating earnings from devices.

The company’s sales increased 46% to $7,140 million while its operating earnings rose 62 per cent to $799 million.

Motorola has retained its second position in India and world wide, while expanding its global market share to 22% in the second quarter this year. The company also expanded its market share to more than 20% in China, up 8.9 percentage points from the year-ago quarter.

Nokia, the world’s largest maker of mobile phones, said second-quarter profit gained 43% while net income rose to $1.44 billion. Sales rose 22% to $12.24 billion from $10.1 billion.

Analysts are of the opinion that handset sales in China and India were likely to have boosted the companies’ earnings.

While Motorola’s earnings have beat estimates, those of Nokia are largely seen as reflecting stagnant growth in the industry. Bloomberg article has more details.

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