The new product turnaround at Motorola (NYSE: MOT) may already be crippled. One analyst, quoted by Bloomberg said, "The Razr 2 didn't set the world on fire and it won't be a phenomenon like the original one."
The cause of Motorola's problem with its newest product may be the Apple (NASDAQ: AAPL) iPhone, which appears to have sold more than two million units in the last quarter of 2007.
While the RAZR2 may be a better product than its predecessor, Apple, Nokia (NYSE: NOK), Samsung and Sony Ericsson have all introduced similar products to take advantage of the high-end multimedia handset space. Motorola may be squeezed out of a market it helped create.
With its shares trading just above $13, near a 52-week low, a weak fourth quarter earnings report could take the stock much closer to $10.
Douglas A. McIntyre is an editor at 247wallst.com.
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Reader Comments (Page 1 of 1)
1-23-2008 @ 9:52AM
addicted said...
MOT brought this upon themselves by cheapening the RAZR brand while it was at its all time high popularity. I remember when a special edition RAZR was distributed at the Oscars, providing MOT with a ton of free publicity and a great premium price, but soon MOT reduced the price of the RAZR dramatically in search of market share, which made the RAZR desirable no more.