After a streak of poor outlook, Motorola finally may be on the path to curbing their past cash losses. Back in 2005, Motorola had experienced a great deal of success with its Razor cell phone. However, it has been experiencing significant financial losses ever since that point. Those losses can likely be attributed to the significant growth of the Smartphone in recent years. Major market players like Apple and Research in Motion have invested heavily in Smartphones which has contributed heavily to their successes.
With Motorola’s introduction of the Droid on the Verizon Wireless Network, it has become clear that they have realized how vital the Smartphone market has become. Motorola’s recent sale of its infrastructure also provides a clear indication that it has been working hard to reverse its lengthy trend of profit losses. According to AFP via U.S. Credit ratings agency Moody’s, "The change to a positive outlook reflects Motorola"s improving credit profile as a result of the significant cash balances that Moody"s expects the company will have following completion of the transaction.” This change comes after the cell phone company sold most off a large portion of its infrastructure to Nokia Siemens.
This progress provides a strong indication that Motorola is making significant inroads towards reversing its cash loss. It was also revealed that in 2011, Motorola plans to split into two separate entities. One of those entities will focus on mobile handsets while the other focuses on professional safety equipment. As a result of this positive news, Motorola experienced gains of 5.60 percent on the stock market. Its stock closed at 7.92 on Monday.