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Motorola slides to 6.5% market share in fall

updated 08:25 am EST, Tue February 3, 2009

Moto Q4 2008 Results

Motorola on Tuesday reported further trouble for its recent fall quarter with both an immediate financial hit as well as ongoing drops in its phone shipments. The company says it posted a net loss of $3.6 billion during the three-month period ended in December and pins much of the responsibility on its Mobile Device group, whose losses ave only deepened year-over-year from $388 million in late 2007 to $595 million. Motorola blames drop on the economy and points to its 7,000 job cuts and a just-announced suspension of its usual cash dividend to shareholders as steps taken to rescue its business.

The mobile group's fall is directly attributable to poor cellphone shipments. Motorola notes it shipped just 19.2 million phones in the fall, which represents just 47 percent of the 40.9 million in late 2007. While no explanation is given for the shortfall, the company had only one smartphone introduction in the form of the Q 11 and considers only feature-limited, specialized phones as its highlights, including the $2,000 Aura, the Verizon-specific Krave and the Hint for Alltel.

Motorola estimates that it slid to 6.5 percent market share in the holidays, which is below recent estimates and, if accurate, will have fallen to fifth place in the cellphone market behind already struggling Sony Ericsson and the rapidly surging Korean firm LG. The decline was symbolized in the fall by the iPhone ousting the RAZR as the most popular phone in the US during the summer despite a much higher price point.

The company is nonetheless more positive about its future and notes that it generated positive cash flow of about $201 million helped by its other divisions. Mobile Devices is also claimed to be "on target" to launch a major revision of its devices in fall of this year, which most observers expect will include a major emphasis on Google Android that reduces the amount of Windows Mobile handsets.



By Electronista Staff
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Comments

  1. Constable Odo

    Fresh-Faced Recruit

    Joined: Aug 2007

    0

    The SEC should be

    investigating Motorola instead of Apple. That has to be one of the most crooked American companies ever. They've been lying to investors and probably the employees for the past five years about the revival of the company and handset sales. Instead they sell less and less and fire employees by the thousands. I'll bet the top executives are filthy rich from pocketing huge salaries and golden parachutes when they are let go. In all honesty, how could a company that had a wealth of technology, just let everything slip away unless the executives were deliberately out the destroy the company. Luckily, they'll never have to pay for their crimes and will continue to live wealthy lives unlike their ex-employees who will be kicked out of their jobs with next to nothing at such a critical time in the economy. Motorola dividends were crappy and now they've discontinued them completely. Wow! Motorola truly does suck.

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