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Motorola Xoom  (Source: Motorola)
Analyst cuts projections for Motorola thanks to poor sales

Motorola has made quite the comeback in the last couple of years after slipping significantly with handsets and smartphones that consumers just didn't buy. The comeback made by Motorola is thanks in large part to the Android operating system.

The latest launches from Motorola including the Xoom Android tablet and Atrix Android smartphone have turned out to not be as popular as Motorola hoped according to some reports. The revelation that the two products just aren’t doing well on the market comes from analyst James Faucette from Pacific Crest. Faucette cites a channel check he performed that shows the sell-through for both the Atrix and the Xoom "have been disappointing."

Faucette reports that the Atrix in particular is being hurt by the low $49 price tag Apple has on the iPhone 3GS and the same $49 price for the HTC Inspire. Those low prices are conspiring to limit the demand for the Atrix. Because of the poor demand and sales of the Motorola devices, Faucette is cutting the 2011 revenue forecast for Motorola to $12.2 billion from its previous estimate of $13.7 billion.

Faucette also dropped his outlook for Motorola in 2012 as well cutting the projection to $13.6 billion from $15.3 billion before. He also notes that further reductions could be made to his projections if Motorola is unable to adjust and refresh its product portfolio. Undoubtedly, the lower price of the iPad 2 is hurting sales of the Xoom tablet as many tablet shoppers aren't willing to give Android a shot.

Faucette does note that Wall Street is confident in Motorola management and that the company has good cash reserves. However, he notes that if Motorola isn’t able to launch products that stand out in a crowded market shareholders may start calling for new management.



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RE: Where is the marketing?
By Aloonatic on 4/6/2011 12:15:00 PM , Rating: 2
Maybe you are not someone whom their marketing department is targeting, so they are not bothering to "waste" money advertising during the shows that you (and others in your demographic) typically watch?

Advertising is somewhere where Apple seriously invest, whilst most other companies don't. Even MS don't advertise their consumer products as much. Partly because they don't need to as they have been so dominant in many areas, but it seems that they just don't really seem to know what to do. I have seen their general Windows Mobile ad a few times (the one with the wife in the black nightie) but not that often, and only saw an ad the other day which actually showed WP7 working, mentioning live and MS office etc.

Sometimes it seems that no one really has the will to go toe to toe with Apple in the mobile phone and tablet octagon, and put their advertising/marketing budget on the line.


RE: Where is the marketing?
By StraightCashHomey on 4/6/2011 12:48:54 PM , Rating: 2
I watch plenty of the common networks, and I always used to see the "Drooooooiiiiiiiid" commercials when that came out. I don't see any Xoom commercials.

I always figured you get your money's worth out of advertising, so I'm surprised I haven't seen many more commercials for Xoom, WP7, etc.


RE: Where is the marketing?
By KentState on 4/6/2011 1:42:41 PM , Rating: 2
I have seen many times more commercials for the Xoom lately than the iPad2 on tv. During the NCAA basketball tournament, they showed one each 30 minutes and a lot during prime time programming. The Galaxy has also been on tv a great deal.

http://www.youtube.com/watch?v=TxZ6NQnIPkU


RE: Where is the marketing?
By KoolAidMan1 on 4/6/2011 1:57:27 PM , Rating: 2
Are you kidding, they market the hell out of the Xoom on TV. They even have celebrities and athletes shilling for them on Facebook and Twitter.

The Xoom just isn't that good a product side by side with an iPad. It isn't rocket science why even an informed consumer would pass the Xoom over. It just isn't feature competitive in any way.


RE: Where is the marketing?
By Lanister on 4/6/2011 2:14:29 PM , Rating: 2
What features are you comparing? My guess is they are all going to be personal preferences or opinions. After playing with the Ipad2 and Xoom for about 4 hours at bestbuy the only thing the Ipad had over the Xoom were the apps, but please let me know if I overlooked anything as I still have 11 days to go and return my Xoom and get an Ipad.


RE: Where is the marketing?
By rburnham on 4/6/2011 2:44:49 PM , Rating: 2
No, that's accurate. The Xoom's only fault right now is a limited number of tablet-specific apps. Time will rectify that. Otherwise, the Xoom outclasses the iPad and iPad2 on just about every front.


RE: Where is the marketing?
By robinthakur on 4/7/2011 9:08:04 AM , Rating: 2
Well the screen is meant to be better on the iPad (disregarding resolution, contrast is way better, the iPad is more reliable and does not have choppy, juddering animations. Everybody knows how to use an iPhone/iPod so it doesn't seem as complex as using a non Apple tablet. I also think that the kind of person that would buy a tablet has gotten quite used to disregarding the sort of adverts saying "iPad killer"/"Better than iPad" commonly marketed with Galaxy Tabs and those other cheap chinese knockoffs of the iPad running a phone OS (1.6-2.2) and is probably quite wary about them. Also, its usually stated that this is the first proper Android tablet and reviews have pretty much all stated that it's unfinished in its current state and has some build quality issues right now. That and it's actually priced MORE than an iPad, which is insane.


RE: Where is the marketing?
By theapparition on 4/6/2011 4:55:11 PM , Rating: 2
We see why your username is "KoolAidMan1".

The Xoom is far better in almost any metric than the iPad2.

iPad2 wins in number of apps, and by having a lower priced (albeit lower featured) offering. iPad2 is also better in some physical areas, such as weight. But for almost any other metric, the Xoom is hands down better.

I've said it before though, the better product doesn't always sell better.


"Folks that want porn can buy an Android phone." -- Steve Jobs














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