Motorola Is Just Burning Cash For Google

Google’s smartphone company Motorola is just burning cash.

According to Google’s earnings report, Motorola lost $US248 million last quarter, which is up from $US49 million loss when Google first took over the smartphone maker.

In total, Motorola has lost $US1 billion since Google officially acquired it. That’s in addition to the $US12.5 billion Google spent to get Motorola in the first place.

These loses remind us a little bit of Microsoft’s online division, which just burns cash.

It’s unclear how Motorola is going to fix this problem. The Moto X is a very good phone, but sales seem to be light. To crank up sales, Google will have to invest in marketing, which means more loses. And there’s no guarantee that more marketing means more sales.

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