News
Woe Moto
Tim Green Jul 13 2007, 10:30am
Motorola has told investors sales for the quarter will fall by eight per cent.
The US handset vendor predicts sales between $8.6 billion and $8.7 billion for Q2, down from $9.4 billion in the first quarter. The results contrast with another strong quarter from Sony Ericsson (announced earlier this week). They’re also being compared with the strong launch of the iPhone, although it’s a pretty meaningless comparison
Motorola blamed the shortfall on lower sales volumes in Asia and Europe.
It expects second quarter device shipments to be around 36 million. The company has appointed a new head for its mobile device division, Stuart Reed, in an apparent attempt to redress the shortfall.
Analysts believe Moto’s poor performance lies with its unspectacular handset portfolio, which has thrown up no major hits since the RAZR. The company has little to compare with Nokia’s high end Nseries range or Sony Ericsson’s Walkman and Cyber-shot brands.
