Motorola Admits Its Obvious Problems

Motorola (MOT) admitted this afternoon that it is facing significant problems with its handset division, has replaced some execs, and lowered revenue guidance for the coming quarter.

We've discussed the firm's problems in the past, and the company won't find a quick fix through the potential acquisition of Palm.  I would continue avoiding the stock.

Funny thing - I recently purchased a RAZR V3xx from the Motorola store, and it functions great - excellent reception, impressive battery life, and real fast data speeds over Cingular/ATT's (T) 3G/Edge network. I would easily recommend it to others.  Unfortunately, few of my friends or relatives will spend more than $50 on a cell phone. 

Even with $10B in cash on the balance sheet, until MOT can find a way to stop discounting its products, de-program the public from expecting nearly free phones, better manage its carrier relationships, and thus bolster operating margins, its shares will not recover.   I don't know when that may be, but if I knew the answer, I'd say not soon.

Comments

[hottpotat0:]

-MOTO is not messing around! If you take a serious look into what is going on you will be amazed! And- maybe pissed if you do not get on the bus-go to wimaxforum.org and look @ their member roster, you will see the future unfold before your eyes-MOTO is partnered up with not just other companies they are partnered up with other countries building and rolling out their WIMAX networks! All other forms of convergence will be left redundant when WIMAX takes over! it is not a question of if-but when-will WIMAX take control-the other telecoms who do not or refuse to convert or participate in WIMAX will become backhaul outfits if they are not bought out in the process!!! The Cell phone business is small potatoes compared to what is about to happen /is happening –owning the hardware and structure of the global WIMAX network will guarantee revenue and lots of it for decades to come!!! that is until we learn telepathy or mental convergence or some other crazy way of communicating-my point is this- Ichan knows what is happening and wants in-so do I-so do a whole lot of others-you can choose to deny what is taking place but that will not make you wealthy fighting the coming wave-another tip is there are some crazy israeli’s making most of the hardware being used-56% globally is their amount of gear others are buying using and installing “alvarion” is their name...... and look to see what they are up to in PAKISTAN!!!

2007 Mar 25 08:39 AM