Everything looks good:
Motorola sticks to handset margin forecast
STOCKHOLM, Oct 5 (Reuters) - Motorola Inc, the world's second biggest maker of mobile phones, is sticking to its forecast of improved profit margins on handsets.
``We will improve our margins (on mobile phones) in the third quarter and we have even indicated further margin improvements in the fourth quarter,'' Fred Kuznik, Motorola's managing director for Europe, Middle East and Africa, told Reuters.
Kuznik was unwilling to go into details as Motorola will release its third-quarter figures on October 10.
Analysts expect the group's margins on handsets to increase to 5.5-6.5 percent from four percent in the second quarter.
Nokia Oyj , the world leader in mobile phone sales, had a margin of 25 percent in the second quarter, but Telefonaktiebolaget LM Ericsson , the number three, is losing money on its mobile handset business.
Kuznik also declined to say whether Motorola's market share in the mobile phone sector had increased, but reiterated that the company's goal was to increase the share.
According to market researcher Dataquest, Motorola had a market share in the second quarter of 15.6 percent, against 27.5 percent for Nokia and 10.3 percent for Ericsson.
Kuznik's comments follow a statement from Motorola last week that it had not changed its third-quarter earnings expectations despite market speculation it would miss its targets.
Motorola said in July it expected third-quarter earnings of 26 cents a share and revenues of $10 billion.
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