Motorola is in the midst of a climb back into relevance and, quite surprisingly, it seems to be making more progress than had been projected. Are you sitting down? Motorola just reported its Q2 2009 earnings and… It’s in the black! That’s right people, Moto managed to eek out a $26 million profit albeit on the back of major cost cutting efforts including the reduction of its workforce by around 7,000 jobs. Mobile Devices remains Moto’s weakest link, having posted $1.8 billion in sales and an operating loss of $253 million. In the same quarter in 2008 however, Mobile lost $346 million so at least we’re moving in the right direction — though the turnaround can be attributed entirely to cost cutting as handset shipments were down almost 50 percent to 14.8 million. So what exactly is going to right this sinking ship? We’re not really sure, though Moto did confirm it would release its first two Android-powered handsets with US carrier partners in the second half of this year. While the company didn’t go into specifics, both should be out by the holiday season this year. We love the affordable Morrison on T-Mobile and the Sholes is definitely going to knock some socks off, but we need to see a hell of a lot more out of Moto ASAP because slow and steady isn’t winning any races these days.
Verizon, on its investor conference call this morning, reaffirmed its intentions to launch the Palm Pre in early 2010. While news of Palm’s revival handset hitting Verizon in the near future is hardly a surprise, Pre hopefuls loyal to Big Red will certainly find comfort in hearing VZW announce the news publicly once again. The impending arrival of the Pre comes alongside Verizon’s Q2 earnings report, which was otherwise laden with bad news. Revenue came in at $26.9 billion, up 11 percent YoY but profits dove a massive 21 percent to $1.48 billion. Wireless saw a 27.7 percent increase YoY in total revenue with a massive 52.6 percent increase in data revenue. Unfortunately, it just wasn’t enough. The real news from today’s call is that Verizon announced plans to reduce its workforce by around 8,000 between now and the end of 2009. It’s pretty obvious that Big Red needs to take drastic measures in its effort to cut operational expenses, but ouch.