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Sep. 10, 2007

Motorola is planning to reduce is quarterly R&D spending for cell phones by about 15 percent by the end of 2007.

The decision has to do with Motorola's ongoing attempt to regain profitability in the short term.

But a spokesman for the company said Motorola would be careful not to impede the development of new cell phone models as it looks to greatly reduce its costs.

Overall, Motorola's handset division has declared a loss for the past two consecutive quarters.

In the past four to six months, the company has been criticized for a weak line-up of handsets following the success of its RAZR cell phones in 2006.

Motorola has repeated that it's looking to regain its profitable position, saying that it plans to return to operating profit margins well above 10 percent in the coming two quarters.

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Source: Wireless Week