Motorola, the wholly owned Google subsidiary, reported a loss of $342 million for the second quarter of 2013, a loss which is $100 million greater than last year. Despite this, Google’s share price continues to rise as the parent company reported revenues of $14.11 billion , largely through advertising networks.
Despite Motorola’s net loss increasing it did bring in more money than this time last year – just short of $1 billion.
The future of Motorola may hang on the performance of the Moto X and it seems that Google are determined that the handset makes a splash in the market, spending $500 million on marketing the device according to TheNextWeb. However, Google have shown a commitment to long term investment, most obviously in creating the Android operating system, so it is possible that they will be willing to grant Motorola a grace period to acquire a bigger market share before cutting their losses and scrapping the brand.