“The troubles continue at Motorola,” Eric Savitz blogs for Barron’s.
“For the first quarter, the company posted revenue of $5.4 billion, down from $7.4 billion a year ago and $7.14 billion in Q4, and below the Street consensus at $5.55 billion. The company lost 8 cents a share from continuing operations before charges,” Savitz reports.
“Revenues from the mobile devices unit were $1.8 billion, down 45% from a year ago, and off 23% sequentially. The company sold 14.7 million handsets in the quarter, down from 19.2 million in Q4. The company estimated that it had 6% market share in the quarter. The company lost $509 million on a GAAP basis in the mobile devices business, versus $418 million a year ago and $595 million in Q4,” Savitz reports.
Full article here.
MacDailyNews Take: This is what happens to companies with weak leadership that lacks even a wisp of coherent vision coupled with the persistent tendency to rest on their laurels, however sparse they may be.
In May 2007, Motorola’s then-Chairman and then-CEO Ed Zander boasted that his company was ready for competition from Apple’s iPhone, due out the following month. “How do you deal with that?” Zander was asked at the Software 2007 conference. Zander quickly retorted, “How do they deal with us?”
Barely six months later, this crossed the wire: Beleaguered Motorola’s CEO Zander out; ‘plans to spend more time with his family’ – November 30, 2007
And, things haven’t gotten any better for Motorola since.