The company's first response to this was announcing it will be laying off 3,500 employees, or 5 percent of its global workforce.
More Smartphones are Coming, However
The number of handsets shipped by Motorola during the quarter increased by 47 percent, but most of these are mid-range and low-end phones - not the high profit margins of SmartPhones.
However, at CES earlier this month, Ron Garriques, the head of this company's mobile phone division, promised that more high-end devices are in the pipeline, especially ones with support for 3G cellular-wireless networking and/or mobile music.
Models like these typically have higher profit margins than less expensive ones.