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Motorola is exceeding industry expectations and making a profit on the back of its best-selling smartphones.

More than eight and a half million Motorola mobile phones were sold around the world in the first three months of 2010, with roughly a quarter being smartphones such as the Milestone and Dext mobiles.

The performance of Motorola in the smartphone market is better than analysts had predicted, although overall its total sales figures are below the forecasted 10 million units.

In 2009, Motorola managed to sell 14.5 million mobile phones in the same period, although it is the rising smartphone sales in 2010 that "[matter] the most and should drive the stock up today," according to analyst Pierre Ferragu.

Motorola has struggled to retain its position in the mobile phone market over the last few years and has only just begun to recover its position thanks to some excellent smartphones paired with Google's Android operating system.

Motorola's Sanjay Jah has made the cost of manufacturing mobiles lower and more efficient and it has been with his backing that the Android platform has become a core asset to Motorola smartphones.

Motorola is predicting that in 2010 it will sell up to 14 million smartphones, but Mr Jah is not being complacent about the competition posed by Apple, which is launching a new iPhone this year and could further entrench itself in the consumer consciousness.

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