Chicago, July 16: Motorola Inc., the world's second-largest wireless telephone maker, posted a quarterly profit on Tuesday, but its sales slipped and it reeled in forecasts in the face of intense competition in the Chinese phone market. Shares of Motorola fell slightly in after-hours trading after it released its results.
A slowdown in demand for mobile phones has been exacerbated by tougher conditions in Asia, where the SARS outbreak and increased competition from Chinese rivals hurt sales. China accounted for about 14 per cent of Motorola's sales last year.

Motorola has the largest share of the mobile phone market in China, where severe acute respiratory syndrome has hit the hardest. That forced Motorola to warn investors last month that sales and earnings would be lower than its earlier forecasts.
Motorola President Mike Zafirovski said in a conference call the company expected to improve its position by introducing new phones, increasing its investment in local design and engineering, and stepping up distribution to smaller cities. Bureau Report