Motorola Mobility warns that Apple iPhone could hurt Q1 earnings
On a GAAP basis, Fourth quarter profits of $80 million trounced the 2009 quarter's loss of $204 million. For the full year, the company lost $.29 cents per share vs. a loss of $4.56 per share last year. Cash flow was positive to the tune of $225 million and $606 million for the quarter and the year. The company did receive $3.2 billion in cash as part of the terms of the spin off.
In the last quarter, Motorola Mobility shipped 4.9 million smartphones and 13.7 units were shipped for 2010. Total phones shipped were 11.3 million in Q4 and 37.3 for the entire year. Seven new smartphones were launched in the fourth period including the Motorola DROID Pro and Motorola DROID 2 Global. The company rolled out 23 new models to the market over the course of the year.
Q1 is expected to see the company report operating earnings at breakeven although the bottom line will show a net loss of $26 million to $62 million, which should result in an earnings per share loss of 9 cents to 21 cents per share. CEO Sanjay Jha blames one specific device for the weak current quarter. Jha said, "Since the announcement of the iPhone [on Verizon] we have seen some slowdown in our sell-through of our devices, because clearly there's an anticipation of the devices coming to Verizon. We have seen that even prior to the iPhone launching."
source: BGR, ComputerWorld
1. tuminatr (Posts: 734; Member since: 23 Feb 2009)
they will but maybe not as much as you think
8. narley (Posts: 357; Member since: 14 May 2009)
if Motorola was smart they would launch the Xoom and the Bionic Feb 1st. Those couple weeks the iphone is avail that neither of those will be is going to kill them.
9. narley (Posts: 357; Member since: 14 May 2009)
P.S. Lets be honest, Bionic is 4g, it would take a huge chunk out of iphone sales.
2. webOSdev2.0 (Posts: 31; Member since: 17 Jan 2011)
If Verizon gets a the new iPhone then there will be major competition, this was all predicted in 2009 when the OG Droid was released, Motorola can't simply place all of their resources in one cellular company and stay relevant to everyone. Don't get me wrong the Droid line was started because of their awesome success but they need to spread the love. The Atrix is a good step in that direction but a super smartphone like that for T-mobile or Sprint would gladly be welcomed by everyone.
3. 530gemini (Posts: 2198; Member since: 09 Sep 2010)
Apple iphone really rules whether you like it or not.
7. Sniggly (Posts: 7297; Member since: 05 Dec 2009)
Sure, because shitty reception and call quality, a less than average camera, a small display, and a casing that can break if you get dust under the bumper case (which you have to have due to the reception issues) and it rubs back and forth really are qualities of a phone that "really rules."
How many times could you drop your iPhone before it busts apart? Could you drop it ten times a month as a demo to customers, unprotected, onto a thinly carpeted floor over concrete from shoulder height? Would you even have the guts to do it once on a dare? How about some water damage? Would your iPhone still work after water got into the battery compartment?
*Motorola Droid X takes a bow* Thank you, thank you, I'll be here ALL YEAR.
11. XxVerbalxX (unregistered)
I hate the iphone with a passion....that being said
The camera on the iphone has tested better than the x for clarity and color saturation. megapixels arent everything
you dont need a bumper case on the verizon one regardless, the antenna issue has been fixed (or better b...)
you cant grade its reception on vzw yet. the phone has not been released, and even if it hasnt it will obviously have better coverage due to less congestion on our network, plus we have a ton more towers
if you get water on ur battery compartment on the x the odds of it screwing up are the same as the iphone. just depends on how u dry it out. its not a water resistant phone. i will say the original droid when dried out only seemed to have some touch screen responsiveness issues when i played with 2 ones that got wet. never played with a water damaged iphone.
i wouldnt keep dropping ur x as a demo, its not like its a military grade phone here.
OK, back to loving droid....the "unbreakable" glass on the iphone seems to break more than the 3gs version, so im sure the x would b more durable
the screen is bigger, and looks great. yes the retina display makes it very clear on the iphone i feel its waaay over rated.
i hate the iphone, but i hate bashing the iphone with inaccuracies more. the x may very well b the better phone but lets wait for the vzw one b4 we start bashing some of the issues that may have been at&t's fault.
5. achilles (Posts: 54; Member since: 27 May 2010)
Dear Motorola, if Verizon released the Bionic at the same time as the Iphone, while simultaneously releasing the Atrix on AT&T, all during Q1, then Motorola would easily outsell all devices, making huge profit. But instead, you are releasing the Atrix on AT&T Q1, then waiting until Q2 for the Bionic on Verizon. I know, politics.
10. Hallucinator (Posts: 344; Member since: 24 May 2010)
I am getting the Iphone when it comes out and I completely agree with you. People who want the iphone will get the iphone and people who want the Bionic will get the Bionic. However, you have X amount of people on the fence and are not sure what they want. They will now end up getting the Iphone just because it is available first. I agree with you that they would have had more success releasing the Bionic along side of the iPhone. I also believe that this is more of a Verizon decision than a Motorola decision.