Motorola Is Becoming Google’s Surface
Motorola isn’t doing very well as a part of Google. In Google’s most recently reported quarter, Motorola garnered revenue of $1.18 billion. Not a small number, but a mere 8% of its parent company’s consolidated revenue. And, in the comparable third quarter of 2012, its revenue totaled $1.78 billion.
That’s a decline of 34% in a year, even with Motorola launching its much-hyped Moto X smartphone.
That’s only half the picture, however, as Motorola loses quite a lot of money: $248 million in the quarter. Google sums this well, noting that the loss was “-21% of Motorola Mobile segment revenues.” Motorola lost $192 million in the year-ago quarter, so the trend here isn’t positive.
However, Motorola costs Google in other ways as well. Google recorded an amortization expense relating to Motorola of $153 million in the quarter. However, only $37 million of that sum was incorporated into Motorola’s results, so the net impact of Motorola onto Google’s quarter is in fact larger than it first appears.