Google has officially released its financial results for the third quarter of the year 2013. As always, this time also, the numbers are big and impressive but not all is good! With the Q3 earnings out, it is clear that Google has kept on rising but Motorola is on the downfall.
Google’s Q3 revenue report shows total revenue of $14.9 billion. On comparing this figure with the company’s earnings last year, you will be happy to know that there is a 12 percent growth. But even though Google is on the rising, Motorola is not doing so well.
Google bought Motorola Mobility back in the year 2011 in an attempt to revamp the brand and come up with new and innovative smartphones. Google invested a lot of money in this new acquisition and during the launch of Motorola’s Moto X, the company also raised a heavy budget for marketing.
So speaking of Motorola, the brand made an earning of $1.78 billion in Q3 last year. But this year, the earnings were down to $1.18 billion, meaning that the company did not even perform as well as it did last year.
This year, Motorola came up with a range of new smartphones, most of which had a number of new and unique features. These devices include the Motorola Moto X, Droid Maxx, Droid Ultra and Droid Mini. And we are almost sure that a majority of the company’s earnings must have come from Moto X sales. But even that number was not strong enough, and the company kept on reducing the prices of the Moto X, just months after release. By the way, the company has already reported a loss of $248 million.
The consolidated operating income of the company was $3.44 billion, that’s about 23 percent of revenues this year, last year this value was $2.74 billion. With the increase in revenue and profits, the earnings per share have risen from $6.53 to $8.75. All in all, the company has had a great Q3 and because of this financial rise, the company’s stock has soared by 10 percent in pre-market trading, making the value of each share as high as $980.
Google is looking forward to changing the world with its new range of smart devices. Even though Motorola was not able to perform well, Google might encourage the Motorola team to give consumers what they want – full HD 1080p display, quad-core processor and a high performance camera to start with. Even though a full HD 1080p display and a quad-core processor does not directly affect performance, consumers simply want these specs and features anyways.
Along with encouraging Motorola, Google is also working on a number of new products of its own. The list includes the new Nexus 7, Nexus 10, upcoming Google Nexus 5, Android 4.4 KitKat and innovative products like Google Glass and the Chromecast streaming dongle.