RBC cuts Motorola forecast citing competition, poor XOOM sales

By on Apr 1, 2011 at 2:50 PM
Business April 1, 2011

RBC Capital Markets analyst Mark Sue on Friday cut his price target for Motorola Mobility stock to $33 from his previous target of $38. Sue also lowered his first and second-quarter sales and revenue forecasts, citing increased competition and slow sales of Motorola’s XOOM tablet. Motorola anticipated a rough first quarter when it reported fourth-quarter and full-year 2010 earnings in January, but Sue now believes earlier estimates were still high. He notes increased competition from devices like the HTC ThunderBolt at key carrier partner Verizon Wireless in revising his first-quarter device sales estimate down to 9.2 million units from 9.9 million. Sue also shaved $100 million from his first-quarter revenue forecast, which now sits at $3 billion. In the second quarter, Sue now sees Motorola selling 10.5 million devices, which includes only 300,000 Motorola XOOM tablets — down from his earlier estimate of 400,000 XOOMs and 10.9 million total devices. Motorola anticipates a net loss of between $26 and $62 million in the first quarter of 2011.

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74 Comments

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  • Anonymous

    I love MOTO! Why? Well in Puerto Rican Spanish, MOTO means “joint”! Love it!

  • Anonymous

    Here it is plain and simple: ANDROID IS NOT WORTH $500-$800. It’s a beta software and Google knows it. The ONLY reason Android grew in the smartphone race is because of BOGO offers. In other words they had to GIVE devices away. I’ve been saying it all along to my co workers that A LOT of companies will file for bankruptcy because of Android tablets, and if this is any indicator I’m spot on.

    So Ill end with this: The iPad WILL be the go to tablet for YEARS to come. Android Tablets will NEVER SELL well. Unless companies plan on giving there products away its back to the drawing board, all because of Android. And NOW they are two years behind the iPad.

    ANDROID: The every hardware and manufacturer killer.

  • Anonymous

    Even Stevie Wonder could have seen this coming. How to do expect to gain market share by offering a product to compete with the iPad for the same price that was not truly ready for consumers. I said this many moons ago. Drop the price to $400.00 and it may sell.

  • Anonymous

    Here’s what Motorola can do do not lose up to $62 mil:
    1. Buy AAPL Stock
    2. Wait a month
    3. Thank Steve for the profit.

  • Anonymous

    300,000? That’s horrible. Maybe xoom 2 will sell better.

  • Mavricxx

    That’s what Motorolla gets for being greedy with the outrageous price set for the Xoom! They totally deserve it, hopefully they learned their lesson about competition; specially when competing with the likes of the iPad.

  • http://pulse.yahoo.com/_FZKQKKZOIMO4XCUWCLYKYVCM34 Dave Brown

    Ah, too bad Sanjay. When your people make shit products, bad things happen.

  • http://orac.tumblr.com/ orac

    I cite locked boot loaders as a major contributor to the reduced forecast.

  • Anonymous

    Poor xoom sales? Lol get out of here. Android doesn’t again. 300,000 doom’s sold I think apple sold that many ipad two’s in the first hour of launching it. Stupid garbage.

    • http://profiles.google.com/superg05.jeremy Jeremy Washington

      at 800 bucks thats a miracle

  • Pjtmgt

    Keep lying to everyone- if anyone’s killing Motorola, it’s Apple.
    And Apple’s going to put Motorola out of business this year.

    • Anonymous

      hahahahahahhahahhahaha, someone doesn’t monitor stocks

  • Alexnn

    I think $300 for this thing as some people here suggested is a little too low… If it was $370 -$400 the most i’d surely take it… not more than that….

  • numetheus

    This was extremely predictable. Only the naive thought that the tablet was going to be extremely successful. To win over the masses like ipad has, they now have to be just as thin and have similar our better battery life. The Xoom was poor in both of those. Ipad has set a bar that the other manufacturers have to meet to be successful.

    • Anonymous

      The Xoom was slightly thicker. almost unnoticeably so. the battery life was comparable as well. the only problem here was the price point

      • numetheus

        I’ve played with one. The Xoom feels considerably larger and not as well built.

  • http://twitter.com/KurtSimmons Kurt Simmons

    Motorola obviously didn’t read any comments posted by anyone on the planet. If they had, they would have known that the Xoom was priced too high.

    • http://profiles.google.com/superg05.jeremy Jeremy Washington

      they read the comments thats why they tried to explain themselves

  • http://profiles.google.com/superg05.jeremy Jeremy Washington

    greed was there downfall it only cost around 280 to make the zoom they tried to sell it for 800 instead of 400 or 450 they shot themselves

  • Gmen

    Hey, at least every stupid executive at motorola will get a big ass bonus come Xmas time or they get fired and get big ass severance package to walk away….they win regardless, we lose….good one moto

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