MobileNest

Motorola reported a loss of $181 million during its first quarter. According to company’s report, the price wars in emerging markets and Europe where the major factor in the loss.

The net loss of $181 contrasts the last Q1 profit of 686 million dollars.

Handset sales were reduced by 31 percent, to 45.4 million handsets, compared with 65.7 million in the fourth quarter of 2006.

Motorola’s share of the overall market dropped to 17.5 percent, from 23.3 percent.

“The performance at our mobile device business in the first quarter was unacceptable, and we are committed to restoring it to profitability and positive cash flow” said Motorola’s chairman and chief executive, Edward J. Zander.

To fuel its profits Motorola needs to launch a new model similar to its high-value product similar to the all-metal Razr phone, its top seller.

Handset sales dropped 31 percent in the quarter, to 45.4 million handsets, compared with 65.7 million in the fourth quarter of 2006.

Its share of the overall market dropped to 17.5 percent, from 23.3 percent.

Mr. Zander said the company focus is reduction of operating expenses and jobs. The job cuts are expected to fall in the neighborhood of 3,500 jobs by the end of this quarter, which equates to $400 million a year cost reduction.