Foxconn Hints at Trouble for Motorola

Motorola (MOT) shares continue to sink ever deeper into the mire.

The stock is getting whacked today, perhaps in part from some bearish commentary from the contract manufacturer Foxconn. According to Bloomberg, Foxconn Chairman Samuel Chin made some bearish comments following his company’s annual meeting today in Hong Kong.

Chin said that Motorola, Foxconn’s biggest customer in 2006, is still “having difficulties” and will “continue to impact” his company’s results. The story notes that Foxconn is seeking more business from Samsung and Nokia (NOK) to make up for the shrinking business from Motorola.

Meanwhile, 24/7 Wall Street is blaming Motorola’s slide in part on the debut at Sprint (S) yesterday of the new Samsung Instinct touch screen smartphone, which was priced aggressively at $129. Their theory is that the low price for the new phone could cut into sales of Motorola phones.