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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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By name99 on 4/6/2011 3:17:50 PM , Rating: 2
One of the features, a fantastic one at that, they brag about is priced into oblivion to make it nothing but an overpriced bragging right.

Actually, IMHO the docking station reveals the desperation and poverty of thought at Motorola.
Here's some info you mind find useful. The current year is 2011, NOT 1969.
COMPUTATION (and even RAM) is cheap and fast. What is not fast is COMMUNICATION. In other words, "solutions" that try to replace computation with communication and stupid and backward looking.

What does Motorola's docking station get you? The ability to re-use your low-powered phone CPU (and RAM) which together cost $20. Woo-hoo!
The ONLY THING a person care's about in re-using their phone in this sort of scenario is the ability to access the data stored on that phone. In other words what makes sense is generic software that allows one TRIVIALLY to access the data on the phone from another device --- like a REAL laptop or desktop or whatever. Butthat's not what Moto is offering --- what they are offering is, as pointed out, a solution that costs more than the alternatives yet is crappier. And why? To solve the non-existent problem of "how can I re-use the slow CPU and RAM in my phone"?

And this is the mentality that is dooming Moto. Instead of looking at where the world is going, and the real problems customers have, they are looking at the problem through some sort of insane "what would be totally cool even though it is useless" eyes. Just like USB-powered vacuum cleaners.

"I modded down, down, down, and the flames went higher." -- Sven Olsen

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