“Motorola Inc., the biggest U.S. mobile-phone maker, forecast an unexpected loss after profit fell 84 percent last quarter, as customers fled to Apple Inc. and Samsung Electronics Co.,” Ville Heiskanen reports for Bloomberg.
“Motorola fell 16 percent to $10.30 in early trading. That puts the stock at its lowest since September 2003,” Heiskanen reports.
“Phone sales will drop ‘significantly’ in the next three months after plunging 38 percent in the fourth quarter, CEO Greg Brown said today on a conference call. Motorola devices such as the Razr 2, the sequel to its best-selling model, are failing to keep consumers away from Apple’s iPhone and Samsung’s Sync camera handset,” Heiskanen reports. “‘Their phones are just not selling through, they’re struggling with their lineup,’ Piper Jaffray & Co.’s Michael Walkley said in an interview. ‘The overall health of the market is fine; these problems are Motorola-specific.'”
“Motorola is the third major technology company to report disappointing results in the past week, heightening concerns customers are spending less amid slowing economic growth. Both Intel Corp. and Apple slumped after their sales forecasts fell short of analysts’ projections,” Heiskanen reports.
MacDailyNews Take: Apple smashed analysts’ consensus estimates and reported the best quarterly revenue and earnings in the company’s history. If you lump that in with others under the term “disappointing results,” you’re a stone cold moron.
Heiskanen continues, “Motorola’s share of global phone sales fell to 13.1 percent in the third quarter from 20.7 percent a year earlier, according to Stamford, Connecticut-based researcher Gartner Inc. Nokia increased its market share to 38.1 percent in the third quarter, while Samsung boosted its share to 14.5 percent, according to Gartner. Sony Ericsson lifted its share to 8.8 percent.”
Full article here.
MacDailyNews Take: Motorola Chairman and CEO Ed Zander says his company is ready for competition from Apple’s iPhone, due out next month. “How do you deal with that?” Zander was asked at the Software 2007 conference Wednesday in Santa Clara, Calif. Zander quickly retorted, “How do they deal with us?” – IDG News Service, May 10, 2007
hahahahahahah
oh that made my week
“Motorola Inc., the biggest U.S. mobile-phone maker . . .”
Not for long.
In is interesting, how many of Apple’s competitors use the word “Beleaguered” as the first word of the company name.
Vengeance for the ROKR disgrace and sucking the pipe on the Power PC chip.
Payback’s a bitch.
No mo’ Moto? If they slide much more, they’ll need to sell the company and refund the shareholders.
“Zander quickly retorted, ‘How do they deal with us?'”
By trying not to laugh so hard it hurts.
“Zander quickly retorted, ‘How do they deal with us?'”
With guys like this in charge at Motorola, Apple doesn’t have much to deal with. All they have to do is sit back and watch Zander run Motorola into the ground.
Zander has strapped on his Golden parachute and is leaving Moto to spend more time with his family.
Too bad, another great American brand down the crapper due to terrible leadership. LG will probably buy the brand and do something with it, all American CEO’s know how to do is gut company’s and leave the brand to be picked over and slapped on products (like Polaroid, Sylvania, Westiinghouse and others).
Only one innovating seems to be Apple. Lets hope this stock thing turns around soon.
I’ll bet that Zander wishes Motorola had put some money into developing the PPC chips instead of dumping them and Apple. If they had, Apple might not have made the switch to Intel, and the iPod/iPhone might have been made with Motorola parts. Now, Motorola is road kill, having been run over by the iPhone.
“Too bad, another great American brand down the crapper due to terrible leadership.”
Maybe Moto can hire Michael Spindler to step in and turn things around.
Both Motorola and Apple are American companies. They don’t get what SMS is all about. I’m giving the iPhone a pass.
LOL!
SMS is a hack developed for phones that couldn’t do instant messaging or email. What it’s all about these days is generating a revenue stream for carriers. Pass on anything that relies on it.
Jim, can you even get an iPhone in the Philippines? And what doesn’t Apple “get” about SMS? They just added multi-user texting, so I’m not sure what the fuss is about.
Ampar, I think there’s a sign over the CEO’s door that says “do not fold, Spindler, or mutilate.” 😀
blucaso: Or flood the place with Diesel fumes.
“all American CEO’s know how to do is gut company’s and leave the brand to be picked over”
sadly, that is true in most cases….
…including our current CEO president. i hope we survive him.
I’m a huge Apple fan but I can’t celebrate the woes of a large US company like Motorola and the effects it may have on the economy.
When the opposing team has a player get hurt, we clap when they get up and walk to the sidelines.
Motorola, I’ll clap for you when you get up.
Barrons said:” Apple (AAPL: Nasdaq) By Caris & Co. ($155.64, Jan. 23, 2008)
WE ARE LOWERING OUR RATING from Buy to Above Average and lowering our price target from $225 to $165 to reflect slowing iPod sales and disappointing notebook sales. However, Apple remains attractive to investors with a 12-month horizon as there is gross-margin upside (mix shift to Macs, NAND [flash-memory] prices keep falling aggressively) and the company remains a strong new product story.
For the fiscal first-quarter (December) 2008 quarter, Apple reported revenue of $9.61 billion (versus our estimate of $9.45 billion and consensus of $9.44 billion). Generally accepted accounting …
“
Slowing iPod sales????? 22 million units and many of them at the top price level!!!!! These guys have only hindsight!!
en
MDN says it all = growth
I´m whit Jim on the sms part if he means mms, use it all the time and so does pretty much anyone I know, but then we have been using sms since the ninties here in sweden
Things are going to turn right around for big Mo. Haven’t you MAC sheep heard of the Motorola ‘Q’? Calling it a smart phone is wrong. This thing is a brilliant phone.
It outclasses the I-Phone in
• Price ($99 for a Q vs. $499 for Apple’s Firefly wannabe)
• Buttons (a full keyboard vs. 1 button),
• Operating systems (beautiful Windows Mobile vs. a stripped down Windows ‘me-too’ OS),
• and a little something Motorola and Microsoft have going for them called the ‘cool factor’. Their revolutionary and hip designs are capturing cell phone users’ imaginations.
Apple is definitely on the outside looking in on that last one. Buh-bye Apple.
Your potential. Our passion.™
Personally, I’m not happy to see Motorola in this predicament.
They aren’t MicroSoft. I hope they can make a comeback.
“Comment from: Macs King
Zander has strapped on his Golden parachute and is leaving Moto to spend more time with his family.”
yeah, his family, Benjamin, Alexander, George, Thomas, Ulysses, and the other brothers.
“Comment from: Macs King
Zander has strapped on his Golden parachute and is leaving Moto to spend more time with his family.”
yeah, his family, Benjamin, Alexander, George, Thomas, Ulysses, and the other brothers.
“Comment from: Macs King
Zander has strapped on his Golden parachute and is leaving Moto to spend more time with his family.”
yeah, his family, Benjamin, Alexander, George, Thomas, Ulysses, and the other brothers.
“Comment from: Macs King
Zander has strapped on his Golden parachute and is leaving Moto to spend more time with his family.”
yeah, his family, Benjamin, Alexander, George, Thomas, Ulysses, and the other brothers.
“Comment from: Macs King
Zander has strapped on his Golden parachute and is leaving Moto to spend more time with his family.”
yeah, his family, Benjamin, Alexander, George, Thomas, Ulysses, and the other brothers.