Google’s first steps into the hardware business are proving costly, with recently acquired Motorola Mobility division posting a record quarterly loss of $US233 million.
According to Phone Arena, the result compares to a $US285 million loss for the whole of fiscal year 2011.
The loss includes $US192 million on mobile handsets and $US41 million for home devices, although Google is downplaying the size of the losses, attributing them in large part to “accounting noise”.
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The news comes after former Google chief executive Eric Schmidt revealed Google’s long-term ambitions in hardware, recently stating: “Larry [Page] and Sergey [Brin] have always wanted to do hardware in one form or another. This [Motorola Mobility takeover] was a way to get into it quickly.”
Google’s $US12.5 billion takeover of Motorola Mobility, first announced in August last year, was finally completed in May after several months of negotiations with regulators.