However, Motorola said its mobile -device shipments declined from 8.5 million in the first quarter and mobile-device sales were $1.7 billion, down six percent year over year. Additionally, the company reported an operating loss of $109 million for its mobile-device business.

As a possible sign of better days to come, Motorola co-CEO Sanjay Jha noted that demand for the company's Droid X has been "exceeding our expectations" since its launch earlier this month. "I believe we have momentum going into the third and fourth quarter," Jha said. "As we continue to execute on our business strategy, we are in a strong position to continue improving our share in the rapidly growing smartphone market and improving our operating performance."

Betting On Android

According to Gartner, Motorola ranked sixth in the global smartphone market with a three percent share at the end of this year's first quarter, right behind Sony Ericsson at 3.1 percent. Moving forward, Motorola hopes to benefit from the rising popularity of the Android mobile operating system, which grew a stunning 707 percent year-on-year during the first quarter in the North American market, where Motorola recorded 66 percent of its mobile-device sales.

Motorola is also hoping to capitalize on the headline-grabbing antenna flaw sowing doubt about Apple's iPhone 4. A new IDC survey indicates that 66 percent of current iPhone owners have decided to put off their purchase of Apple's new smartphone.

Apple is attempting to address the flaw by offering a free case that promises to mitigate connectivity problems even as it contends that rival devices such as the Motorola Droid suffer from similar deficiencies. In response, a new ad at Motorola's site points out that unlike the iPhone 4, the new Droid X is a "no jacket required" smartphone.

Jha now expects Motorola to ship more than 20 smartphone models this year with an emphasis on delivering "tightly integrated consumer experiences." Regarding the company's smartphone guidance, Jha told financial analysts he remains "confident in 12 million to 14 million shipped this year, and with respect to the fourth quarter, we continue to expect to be profitable."

Motorola Mobility

However, Motorola will be severely challenged to find additional ways to help reverse its global cell-phone market share slide. According to iSuppli, Motorola fell to eighth place in the first quarter and now ranks behind Research In Motion, Apple and Chinese handset maker ZTE.

The decline reflects the company's strategic decision to shift its focus away from low-margin, mass-market cell phones and toward higher-profit products like the Droid and Backflip, noted iSuppli Senior Analyst Tina Teng.

"As the company works to transition its product line to smartphones tailored for social-networking activities, and to reduce sales of lower-priced, lower-margin models, it stands to further enhance its profitability -- and perhaps reclaim some market share," Teng said.

Jha told analysts he remains "confident" that Motorola's mobile business will begin turning a profit by the fourth quarter. The goal is to smooth the way for the eventual spin-off of Motorola's mobile-device and home-business divisions to a separate company focused on mobile convergence and called Motorola Mobility. "Our target for the separation remains the first quarter of 2011," Jha said.
 

Motorola Models: