In the second quarter, Motorola likely lost its No. 2 position in global handset shipments to Samsung, expected to have shipped 38 million units to Motorola’s 36 million. Motorola announced on July 11 that second-quarter sales were $8.6 billion to $8.7 billion, down from an earlier forecast of $9.4 billion, and that continuing operations had a loss of 2¢ to 4¢ a share. This means that the company missed forecasts for the third straight quarter and that it would suffer its second consecutive loss.
Analysts say that many of the Motorola’s Razr phone users have upgraded themselves to Apple iPhone. This might affect Motorola if iPhone picks up steam.
Shareholders are desperately waiting for the wireless behemoth to turn around things. But nothing seems to be happening. CEO Ed Zander will have to act soon else he will be crucified by the shareholders. The layoffs, cost cutting and product portfolio re-vamp that he undertook have certainly not worked wonders till now. Motorola shares rose almost 3% in the hours before the company’s sales announcement amid speculation that Zander could be about to resign.
According to analysts, Ed Zander will be resigning soon. Also, forces from within the company are also trying their bit to oust him. Business week article Motorola’s Zander: ‘Out of Scapegoats’ has some good insights of the whole Moto episode.
Hello Moto!!! Wake up!!!