Rus News Journal

Motorola has paid for cheap tubes

Second-large in the world the manufacturer of phones Motorola has published yesterday financial results of the first quarter 2007. For the first time for four years the company has shown a quarter loss at a rate of $181 million Experts consider unprecedented decrease in financial indicators by a consequence of marketing errors: Motorola has counted on manufacture of supercheap phones, having lagged behind thus competitors on rates of updating of a lineup.
losses Motorola for first three months 2007 have made $181 million against $686 million net profit for the similar period of 2006. The company gain has decreased on 1,8 %, to $9,43 billion In the company it explain division problems on manufacture of the mobile phones which gain in comparison with the first quarter of last year was reduced to 15 %, to $5,4 billion Indicators of our division of mobile phones in the first quarter are unacceptable, and we intend to work over restoration of appropriate level of profitableness - the chairman of board of directors and the main chief executive Motorola of Ed Zander speaks.

Experts consider unprecedented decrease in financial indicators by a direct consequence of the marketing policy proclaimed Motorola three years ago. Then the company has counted on manufacture of cheap phones for emerging markets. it was an error, - leading analyst Mobile Research Group of Eldar Murtazin considers. - Manufacture ` superbudgetary ` devices extremely nizkorentabelno . Thus, mister Murtazin specifies, the company was engaged in working out of models of an average and higher price segment very little: As a matter of fact, in the last two days the company has not deduced on the market in this segment of any appreciable novelty, except for superthin RAZR. But to sell it it is eternally impossible . Razbalansirovannost lineup Motorola, according to the expert, has led to decrease in a share of the company in the world market, in the first quarter 2007 in comparison with 2006 - from 21 % to 17,5 %.

Sellers of cellular telephones testify that share Motorola in the Russian market also decreases. According to marketing research of the company the Euronetwork in the first quarter 2007 on share Motorola 15,3 % of sales of tubes in Russia that on 2,7 % more low, than for the similar period of last year were necessary. Thus for the first time Motorola it has appeared on the third place on sales volume, having conceded to second one of the largest competitors - SonyEricsson. the Main problem Motorola - a lineup, - tells a press - the secretary ` to the Euronetwork ` to Ochir Mandzhikov. - At it good positions in ` ultrabudgetary ` a segment, but practically are not present novelties in other segments .

Investors have easy reacted to negative news from Motorola. To 18. 00 Moscow time shares of company on NYSE have risen in price more than for 1,3 %. It is connected by that the loss has been in advance predicted Motorola, - mister Murtazin specifies. - Besides at the meeting which has passed recently with investors the company management promised to change considerably business - strategy, to fill up a lineup with phones of an average and top price category and aggressively to advance them not only in emerging markets, but also in the USA and Europe .