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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: Why would anybody buy a Xoom?
By LordSojar on 4/7/2011 3:10:45 PM , Rating: 1
[No one cares about] Flash (flash is device de-optimiser not a feature, including Flash is reason not buy a device).

Really now?

Here's some facts about Flash...

1. 1.2 billion mobile phones are Flash-capable
2. 70 percent of online gaming sites run Flash
3. 98 percent of Internet-enabled desktops use it
4. 85 percent of top 100 Web sites use Flash
5. No. 1 platform for video on the Web – 75 percent of all videos use Flash, including Hulu, Disney and YouTube
6. 2-3-million-person Flash developers community
7. 90 percent of creative professionals have Adobe software on their desktops

You really need to stop listening to everything Apple says Tony. You really really do. HTML 5 isn't even close to finalized yet, it's still buggy and the programming community isn't used to it.

So basically, buying an Apple product is like buying something and knowing you can use it to access everything in... say 2-3 years. YEH! By that time, you'll be wanting the iPad 4... So nice job wasting your money on that measly iPad 2 that can't do very much in terms of web browsing.

Oh, and Safari Mobile sucks.....SUCKS. I'm enjoying my tabbed browsing and Flash 10.2 on my Xoom while you rot without it. :)

By kmmatney on 4/8/2011 2:38:22 PM , Rating: 3
I have to say - I don't miss flash one bit on my phone. Maybe in the 2 years I've had my iphone, the lack of flash was maybe annoying 1 or 2 times. There are also a few different tabbed browsers you can get for the iPad, so that is not an issue.

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