Motorola Mobility stock dips following analyst downgrade

By on Jun 30, 2011 at 12:58 PM
Business June 30, 2011

Facing stiff competition from Samsung, LG, and Apple, Motorola Mobility has seen a slump in its share price and market share following a recent downgrade from analyst firm BMO. According to Dow Jones News Wires, Motorola Mobility’s share of the Android market took off like a rocket when it introduced the highly sought-after Motorola DROID on Verizon in 2009. However, its Android share fell from 33% last year to just 14% in the first quarter as other manufacturers began pumping out competing Android devices, some at lower price points. Reportedly, BMO has cut Motorola Mobility’s earnings per share target for the year and has dropped its price target from $26 to $19. Motorola Mobility last closed at $22, down from its 52-week high of $36.54.

Tags:
, , , , , , , , ,
29 Comments

Related Articles

  • Anonymous

    Analysts strike again!

    All bullshit aside, this makes sense. Samsung has come out with new heavy hitters. LG jumped into the deep end of the pool. HTC keeps on being HTC. The iPhone pushes more units than the dope man.

    Motorola gave us a warmed-over (comparatively speaking) revision of the Droid X. They’ve got nothing worth talking about until the Droid BIONIC is released, and it’s going to have to be awesome to compete with the established contenders.

    • Sin City

      You wrote that like the Photon 4G is inferior to the Bionic.  If anything, they are equal.  The problem with Motorola minus their locked bootloader stance is their strategy to just give Verizon the high ends, and screw everybody else. Yes, they finally working on creating the matter but it’s still like 1-2 devices to Verizon’s 9. 

      • Anonymous

        Honestly? I had forgotten about the Photon. It an excellent piece of kit. But I’ll bet you I’m not the only one to forget/not know about it, either. Motorola is dumb to stick to VZW when it comes to their high-end phones, but that’s what they’ve been doing. If you keep to just VZW for the purposes of this discussion, peep game:

        - LG: LG Revolution
        - HTC: HTC Thunderbolt
        - Samsung: Samsung Droid CHARGE
        - Apple: iPhone 4
        - Motorola: Droid X2

        Motorola is not keeping up with the one company into whose basket they threw all of their eggs with the original Droid. They put out the Photon, but Sprint’s coverage won’t hold a candle to what VZW will do when it’s time to make Droid BIONIC commercials. Unless and until they release that phone… analysts are going to continue to throw shade at Motorola — and deservedly, in my opinion.

      • http://twitter.com/cdoruff Collin Doruff

        Good to point out that Verizon is the one responsible for advertising.

      • http://twitter.com/cdoruff Collin Doruff

        Important to note, that Verizon frequently will demand exclusive rights to sell many of their phones. If Motorola refuses, then Verizon wont sell their phones. The carriers have gotten ballsy lately. In the past, the companies used to decide what carrier sells their phone. Now, the developers have to do what the carriers want, different display, different software etc. The only company that remains in somewhat control over who sells their phone is Apple, who had Verizon on their knees before they got it. Even that was a huge hassle with AT&T.

  • http://www.twitter.com/slinky317 slinky317

    Rightfully so.  Jha needs to step down or be ousted – he’s only had one success, the OG Droid (which probably can be attributed more to Google than to Moto) and almost every decision after that – from Blur, to Webtop, to this latest non-existent LTE fiasco – has been a disaster.

    • http://twitter.com/cdoruff Collin Doruff

      Not to mention he flies in from California every week to Libertyville to work.

  • Anonymous

    Apple will rule the world. True story ™©®

    • http://twitter.com/cdoruff Collin Doruff

      Irrelevant to this article.

      • Anonymous

        It is relevant. I HAVE SPOKEN!  true story™©®

      • Larry

        that avatar you have looks like Apple is coming to suck Android’s penis. true story™©®

      • Anonymous

        Dear Sir

        I am the proprietor of trademark registration no. 1355434

        It has come to my attention that you are using the [True story™©®]
        trademark.

        This trademark is confusingly and/or deceptively similar to my [True
        story™©®] trademark and also constitutes a reproduction or imitation
        thereof.

        In the circumstances, your use of the [True story™©®] trademark will
        constitute an infringement of my registered and common law rights.

        In the circumstances, I demand that you immediately:

        1. cease all use of the trademark [True story™©®];

        2. deliver-up for destruction all material to which the [True story™©®]
        trademark or any other mark confusingly or deceptively similar to my
        trademark has been applied;

        3. withdraw, cancel and/or delete any corporate names, domain names,
        trademark applications and/or trademark registrations for or including the
        [True story™©®] trademark;

        4. undertake, in writing, never in future to make any use of the [True
        story™©®] trademark without prior written authority from me, whether within
        any corporate name, trading name, trading style, domain name or otherwise.

        I await to hear from you by no later than close of business today.

        This is written without prejudice to my rights, all of which are hereby
        expressly reserved.

        Yours faithfully, Scroat

        True story™©® 

      • http://twitter.com/cdoruff Collin Doruff

        Foiled again!

      • Anonymous

        How so? When the author of the article/blog mentions apple in the first
        sentence I think it is fair for me to mention them in my comment.  true
        story™©®

      • Eric

        @Scroat:disqus Sue me!

        True story™©®

      • michael scott

        I checked out your ‘registration number’ and I call bulls!t.
        true story™©®
        Go back to 4chan and troll there. true story™©®

  • Anonymous

    Just announce the bionic already!!

  • Anonymous

    Gov better bail them out.

  • Anonymous

    ROLF it only goes to show that Android = waste of time AND money

    Well deserved Motorola, well deserved.

  • Larry

    There are two reasons why Motorola has lost market share, and they are both self-inflicted wounds:

    1) locked & encrypted bootloader – This drove thousands of users away, and potentially more as the more tech savvy pushed their friends away from Motorola devices due to this

    2) BLUR – yes, that crap of a UI “enhancement” that Sanjay Jha found up his ass and shoved into every single Motorola Phone after the Original Droid.  Even as most customers say they hate this UI and how much it slows a device’s performance, Jha insists it is the solution to all our problems, blaming developers and users instead. To boot, even recognizing that BLUR is a major problem, Moto chooses to just not call it Blur, as if that will make all the problems, bugs, bloat associated with it, go away.

    Get rid of these two things, and Motorola will regain market share, fast.

    • Anonymous

      Well Said Larry;

      and that is exactly it.  Moto, I like the quality of your devices.  Please give me a reason to chose moto again instead of avoiding them because I won’t buy a phone with a locked bootloader and absolutely despise Blur.

  • Johnny Austin

    drop motoblur, physical keyboards, unlocked bootloaders, high end specs = back on top

  • http://twitter.com/EricSeale Eric in Milpitas

    How those locked bootloaders and BLUR working for you Jah? Seems your net work just got a boot up the A$$

  • Pjtmgt

    Good. Samsung’s profits are taking a nose dive and soon Motorola’s- great news for Apple investors.
    All we need now is another piss in your pants, luke warm, quarter from Google and Android will start falling apart at the seams.

    • Anonymous

      I’m impressed, most people try to hide their ignorance and stupidity, but you put it out there for the world to see.

      To state the obvious, Samsung is much more than their phones, so when they have a below average Qtr because sales of their LCD TVs have flattened out you somehow equate that to a problem for Android.

      You choose to ignore the steamrolling Android marketshare is doing to your beloved, or that HTC is about to pass RIM to become the #4 phone mfr.

      Sure, Apple will continue to make insane pre-paid as long as Stevie can continue to get up on that stage and claim something they stole from another os is “magical” and the sheep continue to accept that it is their fault and are holding the phone wrong when it drops calls, so they pony up $30 for a $2 piece of plastic to wrap around their phones. But clearly fewer consumers are seeing the “magic” as the phone that nobody could catch continues to ne relegated to the niche player Apple is. Selling to those that have more dollars than sense.

  • MortonEdward38309081

    I paid $32.67 for a XBOX 360 and my mom got a 17 inch Toshiba laptop for $94.83 being delivered to our house tomorrow by FedEX. I will never again pay expensive retail prices at stores. I even sold a 46 inch HDTV to my boss for $650 and it only cost me $52.78 to get. Here is the website we using to get all this stuff, LiveCent.com

  • Anonymous

    Could this all be because of their locking down bootloader reputation?  If they keep unlocking bootloaders (for older and upcoming devices) they should be just fine.

    Anyways man my Atrix is awesome now that my bootloader is unlocked…2.3.4 FTW!

  • Jimmy K

    BMO? Isn’t their price target on RIM $80?

  • Anonymous

    MAKE MORE DROIDS MOTOROLA!

blog comments powered by Disqus