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"Business Week," Online analysis of recently published articles, said several years Motorola has been unable to deliver the satisfaction of mobile phone products to the market, but also face the economic downturn and the risk of spin-off mobile phone business. However, after the first quarter earnings conference call, the company said it would bet Android platform to be launched before the end of the year several new devices. Some analysts said Motorola’s Android mobile phone or will be successful, and will gradually comeback early next year. The following is the full text:
Motorola’s first quarter earnings to shareholders worthwile difficult, in the closing month of this year in the first quarter 2009, Motorola has failed to come up with mobile phone customer satisfaction, market share, competitors continue to be misappropriated.
However, under the leadership of Motorola hopes on Google’s Android smart phone operating system to restore its weakness. It plans to release fourth quarter of this year several high-end based on the Android smart phones. Motorola Co-CEO Sanjay Jha in the recent conference call, said, "As planned, we will be in the fourth quarter holiday sales season in product releases Android phone."
Since the successful launch of the popular Razr line of phones, a number of years, Motorola has been unable to come up with new models to win consumer hearts through this case, a successful mobile phone will become Motorola resort. Networks have emerged a number of prototype called Motorola Android phone pictures and related specifications. It is reported in which an R & D, code-named Calgary, equipped with a slide-out Qwerty keyboard and touch screen. The other, code-named Ironman, similar to the BlackBerry. Market research firm IDC’s senior analyst Ramon Llamas said, "part of the online leak of the devices look very competitive."
Refusal to acknowledge the existence of Calgary
However, Motorola refused to acknowledge, and Ironman Calgary is its latest mobile phone-based Android platform. The company spokeswoman Danielle McNally said, "Motorola has not any of the companies to respond to rumors and speculation." However, Motorola co-CEO Jha said the company Android prototype more popular, and that is working with the world many operators around the negotiations, will be responsible for these carriers operate Motorola’s Android phone, he added, made available to these operators Android phones are a very positive evaluation.
Market research firm American Technology Research analyst Mark McKechnie said Motorola Android can bet paid off in late 2009 or early 2010, see the outcome, he thought, "If the Motorola Android has failed, then its mobile phone business will be ruined. "
Motorola postponed plans to split the cell phone sector. Mobile phone market, Motorola Apple iPhone and RIM BlackBerry under siege continued loss of market share. This year, in June, Palm will release highly anticipated Pre smart phones, will only be more intense market competition. The first quarter of this year, analysts generally believe that Motorola will lose more market share. Has released the first quarterly filing, Motorola sales down 28%, revenue fell to 5.4 billion U.S. dollars, a drop analysts expected. Motorola’s handset market share fell to 6%, according to figures released by the company two years ago, it occupied 18% of the global handset market rivers and mountains.
Ranks first in sales decline
For other mobile phone makers, not a weak first quarter, but Motorola is the worst situation. In part because it cut the number of poor profitability of the product line, and pulled out some of the success of market failure. Throughout the industry, the global mobile phone sales down 13% to 245 million, the largest decline ever. Motorola’s decline as high as 46% astonishing, mobile phone manufacturers in the world seven years ago is the largest decline. By contrast, Samsung’s decline was only 1%.
Motorola’s handset business may be one to two quarters will be bottomed out before the fourth quarter of this year, its performance will still be lower than the others. If programs such as Motorola, as expected, first quarter of 2010 its growth rate will exceed the average growth rate of the mobile phone industry. First quarter of 2010, the global mobile phone market will recover.
Aggressive cost reduction programs for Motorola’s loss smaller than expected, to 231 million U.S. dollars, but still higher than a year earlier loss of 194 million U.S. dollars. The company also said that before the end of this year 200 million U.S. dollars Jiangzai cut operating costs, is expected to resume in the second half of this year a positive cash flow.
Question on the co-CEO structure
Very nice aside a quarter earnings view, since the beginning of this year, Motorola shares rose 24% as the industry expected it to develop successfully in this year’s mobile device. However, some potential investors, there are still doubts on the Motorola, like its co-CEO structure. Motorola plans to spin off mobile phone business, the introduction of this structure. Founder of a hedge fund, said, "I know, most of the co-CEO structure does not work, he is considering whether to buy Motorola’s shares. And he is also concerned with the former CFO of the company would affect the lawsuit between the companies run.
However, over the past Motorola has overcome many challenges, and developed many industry leading products. In 1996, Motorola StarTAC widespread attention after the listing, which was the lightest phones on the market. In 2004, its Razr to the world’s thinnest mobile phone in the name of so many consumer obsession, and with great success. Llamas, senior analyst at IDC, said, "Many people underestimate the value of Motorola, but I am not one."