Motorola Loses $28 Million In Second Quarter

July 19, 2007 – 11:41 am

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Competition is fierce in the mobile handset industry and the former front runner in mobile handsets has posted a $28 million in losses and lost revenues of 19% for the second quarter of 2007.

Motorola was also surpassed by Samsung and Nokia in handset sales. This will be the first time in five years that Motorola has posted back to back losses.

They announced that they were going to fall short of expectations last week and lost one penny per share, compared to a .55 cent per share profit for the same time last year.

Chief Executive Ed Zander is on the hot seat for the slump in business and could lose his job if a turnabout doesn’t occur.

This has certainly been a very difficult year,” he told analysts on a conference call.
Asked if he still has the board of directors’ full commitment, Zander said: “We’re doing the right things, that’s all I can say at this point.” He also mentioned that “there weren’t many really new ‘wow’ products” in the company’s portfolio in the first half of 2007.

What type of mobile handset do you think that Motorola should be working on to get moving in the right direction again?

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