Motorola: It Will Get Worse
Motorola disappointed with its Q3 earnings. Among other things, cell phone sales missed expectations.
I may get much worse. Several analysts and cell companies say that yield-per-phone revenue should drop in Q4 and the growth rate of sales of cell phones overall will drop next year and in years beyond.
Motorola bet big on the RAZR and won big. But, the air is coming out of that ballon. Q3 profits dropped 45% from the same period last year. Wall St. has loved the company over the last couple of years. Motorola’s stock has raced from $8 in mid-2003 to the current level of $26. (The stock was down 7% after hours).
The company’s next big bet may be on WiMax which is being deployed by Sprint and other companies worldwide, but revenue from that may not kick in for two years.
In the meantime, Motorola has a problem.
Douglas A. McIntyre can be reached at douglasamcintyre@247wallst.com. He does not own securities in companies that he writes about.
I may get much worse. Several analysts and cell companies say that yield-per-phone revenue should drop in Q4 and the growth rate of sales of cell phones overall will drop next year and in years beyond.
Motorola bet big on the RAZR and won big. But, the air is coming out of that ballon. Q3 profits dropped 45% from the same period last year. Wall St. has loved the company over the last couple of years. Motorola’s stock has raced from $8 in mid-2003 to the current level of $26. (The stock was down 7% after hours).
The company’s next big bet may be on WiMax which is being deployed by Sprint and other companies worldwide, but revenue from that may not kick in for two years.
In the meantime, Motorola has a problem.
Douglas A. McIntyre can be reached at douglasamcintyre@247wallst.com. He does not own securities in companies that he writes about.
posted by douglas mcintyre at 4:41 AM
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