Motorola Gets Flattened (Q3 2006 Earnings)

Motorola announced earnings yesterday, and as you may have gathered from the title, the news was not positive. The company reported a steep 45% drop in profit from last year, which CEO Ed Zander blamed on weak sales of Motorola’s iDEN Sprint/Nextel phones.

Shipments of wireless phones was a record 53.7 million units, but only added 17% to the company’s revenues. Motorola did, however, manage to gain 0.3% market share in the third quarter.

Most analysts were expecting much higher numbers, both in terms of profit and revenues. Sadly, for holders of Motorola stock, the share price has since fallen nearly 6%.

The big question on everyone’s minds is: how does this relate to industry giant Nokia’s earnings call for tomorrow, coming on the heels of Sony Ericsson’s blowout quarter, and the news that one of Nokia’s suppliers announced weaker than expected profits?

This entry was posted on Tuesday, October 17th, 2006 at 11:46 pm and is filed under Wireless Industry News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.